Investigative Report: IRS Criminal Investigation Uncovers Cancer Scheme Involving Tax Breaks
In the chaos of this tax season, you might find yourself pondering some unusual questions. One such question is, "What exactly are the rules for filing taxes during a coup?" Well, buckle up, because we're diving deep into this political rabbit hole.
Slapped with your tax return? Some taxpayers are less than thrilled. They're mad at perceived government waste, upset about potential data leaks, or skeptical since Elon Musk and his Department of Government Efficiency have gained access to federal computer systems. Others question the point of filing if they believe the IRS is about to shut down.
But fear not, the tax filing season has been off to a bumpy start, but not in the way you might think. Data from the IRS shows that, as of the second week of the tax filing season, taxpayers are not exactly rushing to file. Compared to the same point last year, there's been a slight drop in both the number of returns received and in processing. However, there's a silver lining - refunds are still up.
The IRS is holding its collective breath as Congress tackles the budget, with Trump's wish list on the table. If enacted, it could mean extending the Tax Cuts and Jobs Act, eliminating income taxes on overtime pay, tips, and Social Security income, increasing the SALT deduction, and decreasing corporate income taxes for domestic manufacturers.
However, there's a chance not all of Trump's tax cuts will make it due to budget constraints. One agreed-on change is an extension of the deadline for Beneficial Ownership Information (BOI) reporting requirements, which will certainly make tax professionals breathe a sigh of relief.
So, what happens if you don't file your income tax return? Failure to file can lead to penalties, which can be quite steep. You could end up with a failure-to-file penalty of 5% of the tax due for each month or part of a month that your tax return is late, up to a maximum of 25%. If your return is filed more than 60 days after the due date, the minimum penalty is the lesser of $510 or 100% of the unpaid tax.
The IRS also has the right to file a substitute tax return on your behalf if you don't file. This could lead to missed deductions and exemptions, and the inevitable tax due still being your responsibility. Engaging in willful failure to file can lead to criminal prosecution, with fines of up to $25,000 and a year in prison.
Now, let's clear the air. This whole coup-tax thing might sound like a stretch, but we'll tackle that question another time. For now, keep filing your taxes, and may the refund gods be with you!
- Kelly Phillips Erb, a tax attorney and Forbes contributor, discussed potential tax breaks for cannabis businesses, which could be a significant change during the tax filing season.
- Scammers are also active during tax filing season, attempting to exploit individuals and businesses through phishing emails, phone calls, and even in-person interactions with the IRS impersonators.
- Treasury Secretary Steven Mnuchin and IRS Commissioner Charles Rettig have expressed concerns about the ongoing budget discussions and the impact it may have on tax filing season, potentially leading to rescheduling of some actions 'soon'.
- Kelly Phillips Erb also highlighted the importance of tax planning for individuals diagnosed with lymphoma to avoid unnecessary tax consequences.
- The deadline for Beneficial Ownership Information (BOI) reporting requirements extension is beneficial for tax professionals, alleviating their stress during the tax filing season.
- If you're a cannabis business owner, it's crucial to seek legal advice and stay informed about the evolving rules surrounding tax breaks to avoid any potential penalties from the IRS.
- During tax filing season, it's essential to be vigilant against scams, double-check your numbers, and file your return accurately and on time to avoid penalties and potential criminal prosecution.
