What is irs penalty for filing extension and nonpayment of $40,000 tax liability?
444323
you'll get assessed interest on that 40k you owe the irs, filing and extension does not give you time if you owe, only time to file the return, as the money is due by april 17th no matter what.
426612
if they owe you money you can take up to three years to file without penalities.  if you owe them there are penalities.
450765
If you are going to get a refund, there are no penalties or interest assessed.  The IRS actually pays you a relatively low rate of interest on the money they owe you.\n\nIf, however, you owe money, then the interest and penalties build up rather quickly.  Failure to pay is equal to .5% of the balance due per month that you pay late, up to 25% of the total balance due.  Failure to file is either 4.5% or 5% of the balance, again up to 25% (a minimum of $100).  Then, on top of that, you must pay interest.\n\nRegardless of whether you owe or are due a refund, I would file Form 4868 online to give you an extension to file your return.  While this won't stop interest and failure to pay penalties, it will help you avoid failure to file penalties, and gives you 4 extra months to file.
233960
When you file an extension, it doesn't give you more time to pay any taxes you owe.  The IRS rules say that you have to pay any money you owe with the request for an extension.\n\nAll the extension does it to give you more time to complete and file your return.\n\nIf you need time to pay what you owe, you should call the IRS **immediately** and arrange a payment plan.  If you wait, you will just have to pay more penalties.\n\nThe number is 1-800-829-1040.
1105532
www.irs.gov is an excellent tax information resource.  They agree with the earlier answer:\n"There is no penalty for failure to file a tax return if a refund is due. But by waiting too long to file, you can lose your refund.  In order to receive a refund, the return must be filed within 3 years of the due date.  If you file a return, and later realize you made an error on the return, the deadline for claiming any refund due is three years after the return was filed, or two years after the tax was paid, whichever expires later. "
528430
If the request comes from the government you MUST withhold the funds and deposit it with the requesting agency as outlined in your periodical filings with the applicable agency.  The agencies vary from state to state, but not executing a goverment order puts you in a position of liability.\n\nIf you want to know exactly how much liability, I suggest you look up the regulations with that agency on the net, or call them and ask about the penalty.\n\nThis text was taken from the IRS link that is below (scroll half way down the page):\n-----------\nAmounts exempt from levy on wages, salary, and other income.   If you receive a Notice of Levy on Wages, Salary, and Other Income (Forms 668-W(c), or 668-W(c)(DO)), you must withhold amounts as described in the instructions for these forms. Publication 1494, Table for Figuring Amount Exempt From Levy on Wages, Salary, and Other Income (Forms 668-W(c), 668-W(c)(DO), and 668-W(ICS)) 2006, shows the exempt amount. If a levy issued in a prior year is still in effect and the taxpayer submits a new Statement of Exemptions and Filing Status, use the current year Publication 1494 to compute the exempt amount. \n-----------\n\nNotice the key words "you must withhold"...
309557
An extension is NOT a license to pay after the due date.  If you file an extension, you still have to pay something when you send it in.  Your best bet is to contact the IRS and explain your situation and they will set up a payment schedule with you which will cost you less in the long run.  If you don't, you'll be hit with high fees and penalties.\n\nKeep in mind that until you get the amount paid off they will be charging you interest the same way a credit card company would for not paying off the full amount all at once.\n\nFor next year, you may want to claim zero dependents on your W4 (if you work)...then you're more likely to get money back or at least owe very little. It will mean you get less money during the course of the year, but you won't be in the position of having to pay at tax time either. You probably only have to claim this way for about 6 months or so to cover what you may owe.\n\nMake some charitable donations during the course of the year, even if it's old clothing or household items you don't use anymore.  Donate to an accredited organization like the Salvation Army or the Red Cross and keep your receipts.  You can claim them on next year's taxes and bring the amount you owe down that way.\n\nConsider opening an IRA (not a Roth IRA).  You can take deductions for the amount you put in each year.
1098393
If using hardship withdrawals for other non-house purposes is not allowed by your plan, your action is a violation of IRS regulations.  Here are the possibilities.\n\n1)  You could be asked to immediately repay the $8,000, or possibly just the $4,000.  If you are unable to repay, it can be deducted from your wages.\n\n2)  It could be reported to the IRS as additional untaxed income, causing your taxes to go sky high.\n\n3)  If you are in a position of authority, and you refuse to correct the problem, the plan could be "disqualified", causing taxes on all the plan money for the whole company to become due.  As an alternate, the company may be liable for an initial excise tax of 15% of 4,000, and 100% of 4,000 for every following year unless it's corrected.\n\nDon't mess with your retirement plan.  It's REALLY bad news.
180230
Great Answers so far!   You are off to a great start.\n\nBelieve it or not, you also need information from your 2004 return.  You need to know how much you paid to the IRS in Taxes.  It is found on the 1040, 2004, on line number 43.\n\nYou need this because you must determine if you have an underpayment penalty.  BTW, you dont want one do you?  If you paid in more than 90% of what you owe this year, you will not pay any penalty.  \n\nTo avoid this penalty next year, for April 2007, you need to pay quarterly taxes this year.  Your first quarterly is due April 15.  Surprize!  The quarterly payment  should be one quarter of your this years total tax, if it appears that you are going along with about the same amount of income as last year.\n\nYour quarterly will be 150, maybe, see below.\n\nYes, you are going to enter the 27,000 on a Schedule C.\n\nYes, you need to get a look at a Schedule C and see all the possible deductions you can take.\n\nStart with your car deductions.  In general, you have to determine whether you will use the total number of business miles X the government rate or use the actual expenses including depreciation for the driving the business miles.  \n\nWhich do you think is easier?  \n\nYou guessed it the government rate.  It is per business mile!!  Ok it is tricky.  in the first 8 months, it is 40.5 cents per mile.  After Sept. 1, it is 48.5 cents per mile.\n\nSee the government actually thinks you have been keeping track in writing.  Not the reciepts, the actual NUMBER of miles.  If you need help, let me know.\n\nAnyway, you get all the expenses you can because you want to reduce the income on the Sch C.  All the C income is taxed as Self Employment tax of about 15.3%. \n\nThen the income goes back to the front of your 1040 and flows from there.\n\nSo, on my computer, ProSeries, also from Intuit, but not TurboTax, assuming all the best and no penalty for underpayment and 10,000 business miles, your wife had no income, you had no interest income, and nothing else either plus or minus, AND you are at least 25 years old!!! you owe $598 for 2005.  \n\nBe sure to send in the quarterly of 150!!  There is a special form for it so that it gets properly credited.\n\nIf both of you are not at least 25, let me know.  If you or your wife are were at least 25, on December 31, go in peace.\n\nBTW, you may want to very soon get your tax taxes going and get them finished off too.\n\nMeanwhile, I hope I was some help.  If you want to contact me feel free.  \n\nIf you are wondering why I wrote and take the time to put it on my machine, I just didn´t want you to get scared at the sight of $3500.00!  I know my wife and I would not have liked seeing that!!\n\nGood Luck.
288883
AS PER THE INCOME TAX ACT 40% YOU HAVE TO PAY..\n\n\nTHAT MEANS $400,000
1172391
Some of your answers posted are incorrect.\n\nMost states work off a system similar to the Federal/IRS system.\nThis means you have three years from April 15 of the year following the year you are reporting.\nFor example, you have until April 15, 2008 to file a return for tax year 2004 (originally due on April 15, 2005).  Since most states share electronic information with the IRS, if you are in good standing with them, the state will notify you by letter of any amount due.\nIf they owe -you- money, they will -not- notify you.  You only have three years to claim an amount owed to you.\n\nState penalties for tax avoidance are in most cases much less than Federal penalties.\n\nMost employers automatically withhold the proper amount (within a few dollars) of your state taxes owed.  If you had federal taxes withheld from your check and filed a federal return, you should really not worry about it at all.\n\nIf you are self-employed, or had employees working for your business, it is a whole other story.  You should then consider hiring a tax expert or attorney as in these cases the possibility of severe fines and penalties can be real.\n\nOtherwise, don't worry about the state issue unless they contact you.\n\nI hope this has been helpful.
368039
Make sure you check with your CPA before you do any of this, but you might try a couple of things.\n\n1. Go ahead and file your return on April 17th showing the $2,000 liability and send a check for as much of it as you can pay. That way, you don't have to pay failure to file penalties. You will however have to pay interest (The IRS charges a reasonable rate.\n\n2. Some have mention setting up a payment plan. I believe there is a small fee to set this up. And it will be more than interest. So find a way to come up with the $500. A friend, family member, credit card, or certainly a bank will loan this to you. Since it is only $500, this is what I would do.
476405
There are no penalties or interest charges if you do not file your taxes by April 17, 2006 when you have a refund coming or due you.  You have three years to file that return or forfeit your right to the refund, so I guess that would be a repercussion.  If you don't file the return within 3 years of the due date, you lose your refund!
948547
It's important to pay your taxes on time, but if you don't the IRS will assess a late payment penalty of 1/2 of 1 percent per month, up to 25% of the amount of unpaid balance, plus interest per month which has ranged between 4% - 9% in the last few years.\n\nhttp://www.irs.gov/businesses/small/article/0,,id=108330,00.html\n\nPenalties and interest apply to years when money is owed.  If you get a refund next year, the IRS will withhold it, and apply it to your balance due.  You can contact the IRS and ask to see your tax account.  They will also send you an account statement showing your current balance owed, if you ask for it. \n\nThe interest charged by a bank or credit card is often lower than what is accruing on your account at the IRS.  It sometimes makes sense to borrow money from another source in order to pay off your balance owed to the IRS. \n\nThe same is generally true for state taxes as well.  Contact the Department of Taxation to see your state income tax account, and to request a statement.\n\nThe overtime you worked bumped you up into a higher tax bracket and increased your percentage owed.  If you couldn't pay your taxes because you had a family emergency, or other reasonable cause, the IRS has the ability to reduce the penalties they've assessed.  You must contact them by calling or writing to your taxpayer advocate listed on your Notice of Tax Due.\n\nhttp://www.irs.gov/individuals/article/0,,id=123423,00.html
28414
complete and mail form 4506 (download from www.irs.gov) and attach $39 check per return (fee)\nit takes 60 days to receive your copy
12829
Contact your local police department.\n\nContact the IRS Criminal Enforcement Division:\nhttp://www.irs.gov/compliance/enforcement/index.html
1049844
If you are in the USA, go to the IRS.  They want your money, not you in jail.  Usually not paying your taxes and contacting them, gets you additional penalties, not jail time.  I have know a number of people who did not pay their taxes for a few years and the IRS worked out a payment plan for them, just like any other creditor.\n\nGetting a tax attorney could be a good idea, if you have something to fight about.  Like you disagreed with your taxes or you were contesting a claim, deduction or ruling, but they are costly.  \n\nA CPA can help you fill out the forms, but they also charge and the IRS will help you fill out the forms also.\n\nIf you really DO NOT want to contact the IRS directly, then there is the option of The National Association of Enrolled Agents.   Its 11,000 members are licensed by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service (IRS), including examination, collection and appeals functions.