Tax screw up story ...

StudyingAccounting · 02-07-06, 12:47 AM

Paying tax can be a complex task sometimes. Is everyone here paying tax correctly all the time? I'm not asking if you're cheating or not; I'm simply asking if you are paying tax while you comply with all laws and regulations assuming that you intend to file tax properly without any cheating. Does anyone have any tax screw up story? Some kind of misunderstanding or mismanagement?

stevo · 02-07-06, 09:30 PM

No, I never have a problem since I now hire an accountant

if you keep good records and invoices etc then I can't see how you can have a problem.
Keep it above board and you'll be fine.

Smith · 02-09-06, 10:20 PM

I always pay my taxes correctly. Well, I use my accountant to do that. I think it's important that you file correctly and to be honest it's not too hard.

StudyingAccounting · 02-10-06, 05:32 AM

I occasionally hear and read businesses' and people filing tax incorrectly and getting into serious trouble. How does that happen?

**Avix** · 02-10-06, 06:00 AM

If you file the wrong information they will only find out if you get inspected I believe.

I usually get into trouble for filing things late and end up with a few hundred pound fine

anteater · 02-12-06, 07:41 PM

If it's going to cost you money for filing late, why not do it early?

I like to get mine over and done with as soon as possible.
Especially when I am getting a tax refund

02-12-06, 07:44 PM

Quote:

Originally Posted by Avix

If you file the wrong information they will only find out if you get inspected I believe.

Depends on the circumstance. There may be some cases where they can deduce from the figures that you have attempted to cheat them.

StudyingAccounting · 02-12-06, 08:00 PM

Quote:

Originally Posted by ed

Depends on the circumstance. There may be some cases where they can deduce from the figures that you have attempted to cheat them.

IRS can go back 5 years or something like that. IRS might be able to go back many more years if it's corporate tax. Once time expires, you won't be penalized though, as long as you file tax. With regard to additional penalty, if it's unintentional mistake, then you pay the amount you owe and interest. If it's found to be intentional, then there will be extra penalty fee.

(I'm still studying ...)