Is there a failure to file tax penalty if no tax is due?
If a person makes x dollars, and has the same amount in legitimate deductions, and x > standard deduction+personal exemption, and the person does not file a tax return, I assume the IRS will request a statement showing the deductions. But, assuming all the deductions are legitimate, are there any failure to file penalties (or other penalties) for this person?
Accounting Sites
- Top Small Business Deductions ? Keep More Cash! | Stock Market News
- benjaminwetherill.co.uk » Blog Archive » Federal Personal Income Tax Exemptions 2008, 2009
Maybe. It’s not whether you owe MORE taxes because too little was withheld. You MUST file if your income exceeds certain thresholds, thereby creating a tax liability. If your income is low enough, you don’t have to file.
Depends on the deductions. The official way to figure out for sure is to … file your taxes!
If you need more time, mail a form 4868 yet tonight. That will prevent any late-filing penalties.
http://www.irs.gov/pub/irs-pdf/f4868.pdf