Not filing your income tax return in time, you might consider that. Or delaying filing your income tax return past the last deadline. Is that wise?
Not filing your income tax return
Taken from our company name, Tax is Exciting, you can figure out we love to file your income tax return. But there are human beings that have a different perspective on the tax collector. They feel being robbed from what is theirs and for which already tax had been paid one. Whether that is value added tax or wage tax, it was tax at that moment of time.
You could decide not to file the tax return in time. The deadline to file the 2020 income tax return is May 2021. If you use the services of a tax advisor, you can delay that 2020 tax return to April 30, 2022. When then the tax return has not been filed, you are reminded to file a few weeks later. Roughly around August 2022 you receive a ten day notice, to prevent a penalty. And if still not filed, the ex officio assessments will start to arrive at your address and these are collected.
While you are in the process of delaying the 2020 tax return, the 2021 income tax return is being issued. Same timeline and deadlines. Then the 2022 tax return is issue, but because you did not file the 2020 tax return in time, there is no more extension possible for you than May 1, 2023.
Suddenly you are in ex officio assessments of 2020, soon ex officio assessment of 2021 and instantly ex officio assessment for 2022. Is that fun?
Not filing your income tax return for 14 years – court case
Maybe it is fun, as there are more tax payers that go down this route. This tax payer was able to file not in time for a period of 14 years his income tax return. When the tax office finally imposed the maximum penalty for this negligence in the 2016 income tax assessment, the tax payer went to court about the penalty.
Not sure why he went to court, as for the court it was obvious why the maximum penalty was imposed. The court gave the tax payer 10 days time to proof in court he had some sort of medical condition or financial issue why he was late filing the tax returns. It goes without saying that he missed the 10 day deadline, and the court is not forgiving.
Do file your income tax return in time
The income tax return is part of a system. If you find if financially difficult to file your income tax return, you are not alone. But if you are in a true difficult financial situation the Government offers tax credits for rent, medical, day care. However, these credits are based on filed income tax returns. If you do not file, you re
ceive no credit or if you had received credit, you need to pay it back.
Tax is exciting
We think tax is exciting. We will be pleased to file your income tax return, in time. Of course it can happen that you forgot about the income tax return or you thought it was already filed. The tax office sends you a reminder, and a last call or 10 day notice. Opportunities enough to avoid a penalty.