Ways to File Tax Late Virginia

1. Ways to File Tax Late Virginia Timely tax payment is the duty of every taxpayer. However, there are some cases when people fail to pay tax on time. Under such circumstances, the penalty is imposed on the taxpayer. An automatic extension for the filing of income tax is offered according to Virginia law. For avoiding extension penalty, one must pay at least ninety percent of tax liability by the due date for the purpose fi filing the returns. In case the return is filed within 6 months, but the remaining tax liability is more than an actual one, extension penalty will be levied. The extension penalty is calculated on the basis of balance tax due at the rate of 2% per month. It is calculated from the due date until the return is filed. However, the maximum penalty can exceed 12% of the total unpaid amount in case of File Probate investing Maryland. The extension period can be till the end of six months or till the return is filed within six months. In case the tax is not filed until six months, the late filing penalty is imposed. In case, the return is filed within six months after the due date, but a return is not paid, extension penalty will be levied till the extension period, and after that late penalty will be imposed.

2. Late Filing Penalty In case a return is filed, six months after the due date, the late filing penalty will be imposed. The late filing penalty is 6% per month from the original due date till filing of a return or a maximum amount of 30% for Tax Late in PA. Late Payment Penalty In case the person files the return within six months after the due date but fails to pay the tax within that period, alter payment penalty is liable. The late payment penalty is 6% for every month with the highest amount of 30%. Moreover, a late payment penalty is not calculated when the added balance of tax is also calculated on the basis of a genuine audit. However, both the late payment penalty and the penalty can be levied. Waiver of Penalty However, if due to extenuating circumstances, a person fails to pay tax return or pay the tax, one can request for forgiveness. For example, due to illness or death of the payer or preparer of the tax, or the destruction of vital documents due to floods, fire or any other natural disaster or any other event which has compelled the person to delay timely filing and payment of tax., forgiveness can be requested. For requesting for tax waiver, the person has to be given written application regarding the details and supporting documents. If the penalty is more than $2,000, an offer has to be filed as a compromise. Interest Interest has to be calculated on the balance amount of unpaid tax. It is calculated from the due date till the date it is paid. Interest charges apply to late payment, payment made with filling of returns on extension, and additional balance imposed due to the amendment on returns or calculation based on audits. Interest is calculated at the federal underpayment rate along with an additional 2% charge.