Florida residents who are unable to file their tax returns on time or who underpay the taxes may be curious as to what type of penalties could be imposed. The final filing deadline is usually April 15, and taxpayers have the ability to request a six-month extension simply by filing a form. The IRS routinely grants extension requests. However, some taxpayers may not be aware that if taxes are not paid in full by the final filing date, interest and penalties accrue even if an extension is granted.
It is important for Florida residents to recognize that there is a difference in potential consequences for innocent errors and willful wrongdoing on a tax return. Tax penalties may be more severe in cases of willful activity, and the potential for jail time may even exist. Experts use an amnesty program related to offshore banking as an example. This program is available to those who did not willfully err in reporting such accounts. However, a separate program would be used if the activity was purposeful.
A June 18 announcement by the IRS indicates that lesser penalties may be offered to those who come forward to disclose their hidden offshore accounts. According to the agency, approximately 6 million Americans live and work as expatriates. In many cases, these individuals are unaware of their requirement to pay taxes to the U.S. for foreign earnings. This may be helpful to Florida residents who previously earned income in other countries.
Care needs to be taken when deciding which spouse does and does not have to pay tax liabilities during the divorce process. While transference of property as part of the divorce process will not result in tax recognition, these transactions can still have consequences when it comes to paying off future taxes.
In our prior post -- as if they don’t know it already -- we reminded the readers of our Miami tax law blog that tax season is here. Residents in Florida are probably at least thinking about filing their federal tax return with the Internal Revenue Service if they haven’t done so already.
Space on the U.S. Supreme Court's docket is a coveted commodity. With all the competition for its attention, the Court seldom hears tax cases.
To “sever” means to cut off or end. And in our society “severance” has come to mean the cutting off or ending of an employment relationship.
The term "tax shelter" is often used imprecisely. After all, seeking to take full advantage of tax deductions, tax credits and other provisions of tax law is a perfectly legitimate goal under the law.
When thinking about the consequences of failure to pay taxes, it is only natural to focus on the role of the IRS. After all, the IRS can seek to impose hefty tax penalties against taxpayers who don't pay up on time or work out an installment agreement or offer in compromise.
Charitable gifts are a wonderful expression of people's generosity. And to encourage people to be even more generous, there are tax deductions associated with such gifts. Many donors in South Florida are very familiar with these deductions.