A tax return is a form or document used by taxpayers to file or report their income and taxes to the tax regulatory agencies. By filing a return, you not only comply with the laws but make it possible to get tax refunds in case you paid an excess. Every country requires it’searning individuals to file taxes every year irrespective of whether your earnings came from wages, profits, dividends or interest.
If you have never filed for tax return before, you may be lost on what exactly needs to happen. You may be wondering if you’ll get arrested or if the regulatory agents will request for anup-to-date report of your taxes when declaring bankruptcy. You may also want to know what happens after you missed to file for a couple of times. In this article, we will discuss some of the frequently asked questions regarding tax filing.
Frequently asked questions regarding tax return filing
If I have skipped filing for a couple of years, do I need to file for all of them?
Tax regulatory agencies do not have a time limit on tax recovery. However, due to time limitation and the need to put the collected funds to use, most taxpayers are required to file their taxes for the past six years to be considered tax compliant. If you want to go further back in time to file previous returns, you should speak to a tax lawyer.
Tax agencies are becoming better at tracking sources of taxpayers’ income and drafting a Substitute Return Fund for missed dues. If you’ve been served with an SRF, you’ve got no option but to pay for all the debt captured in the document.
What if I owe tax agencies back taxes but can’t pay? Do I have to file anyway?
Yep!It’s perfectly fine to awe tax agencies but avoiding to file doesn’t do you any good. Tax filing is just a way of complying with the law. You can find a way to settle this debt as time goes by.
How immense is the fine for unfiled returns?
Failure to file returns can result in a penalty of 5% on any unfiled dues up to a maximum of 25%. Thiscan be really troubling and make it even harder to make all the payments. There is also a possibility of criminal sanctions that could lead to spending more than a year in the slammer. Even if you can’t afford to pay taxes now, just file them to minimize tax bite in the near future.
How can I file old dues if I don’t have all the data?
Generally, the tax agency expects you to file them to your best knowledge. You can also request them to pull out your records and inform you how much you need to file. In case you filed more than is required, you can always request for tax refunds.
Who needs to file a tax return?
Specifically, anyone with the following qualities is eligible to file tax returns:
- a director or a company, a business partner or a self-employed individual
- an employee with a salary or a pension beneficiary with an income above the wage cap
- a representative or trustee of a deceased person
- a religion leader . Visit this site for more information : http://www.taxreturn247.com.au