Chapter 2 Flashcards
tax requirements for corps and partnerships
must file annually regardless of their taxable income
tax requirements for estates and trusts
must file annually if gross income exceeds $600
tax requirements for individual taxpayers
must file if gross income exceeds the standard deduction plus additional age-based deductions
the individual filing amount is lower for:
- self-employed
- those claimed as a dependent by someone else
due date for c corps
15th day of the 4th month following their fiscal year-end
due date for s corps and partnerships
15th day of the 3rd month following their fiscal year-ends
due date for individual taxpayers
15th day of the 4th month (April 15th)
if April 15th falls on a weekend or holiday:
the due date is pushed to the next business day
any taxpayer unable to file by their due date can:
request an automatically granted 6-month extension before the original due date
how much is the “failure to file” penalty?
5% for each month (or partial month) late, not to exceed 25% of taxes owed
statute of limitations definition
the period in which the taxpayer can file an amended tax return, or the IRS can assess a tax deficiency
how long is the statute of limitations?
3 years from the later of:
- the date taxes were filed
- the tax due date
the statute of limitations is extended to six years if:
the taxpayer omits items of gross income above a 25% limit
the statute of limitations is indefinite in cases of:
fraud
which criteria determine if an individual has to file a tax return?
- gross income
- age
- filing status
