Compliance responsibilities

Question 1

When are you required to file a tax return?

Answer 1

an individual must file an income tax return if his gross 1. If income exceeds the standard deduction plus personal exemptions.
2. Taxpayers must also file a return if net self-employment income exceeds $400 during the tax year.

Question 2

What are the filing deadlines for Individuals, C-Corp, S-Corp and Partnerships?

Answer 2

April 15-Individuals and Calendar year corporations, or 15 day of 4th month following close of tax year.
March 15- S corp and partnership

Question 3

What is the penalty for fraudulent non-filing?

Answer 3

-15% per month up to a maximum of 75% of the tax due with the return.

Question 4

How do you avoid a tax underpayment penalty?

Answer 4

-At least 90% of current year taxes,
-100% of last year’s taxes. If AGI exceeds $150,000, then tax payments during the year must be at least 110% of last year’s taxes.
-The penalty can also be avoided if the annualization exception is met.
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Question 5

What is the threshold of tax due to require withholding?

Answer 5

• if the amount of tax owed is at least $1,000 after subtracting withholding and credits.
• No penalty is imposed if the tax due with the return is less than $1,000.

Question 6

What is the statute of limitations for filing a refund?

Answer 6

• Two years from the payment of tax or

- Three years from the date the return was filed (or April 15 if filed before the original due date)