Question by moopoo55: If I have a small home-based business and I have not filed any taxes in 3 years, what are the penalties?
Let’s say that I’ve calculated most of the 2003 year and have concluded that I didn’t owe any taxes for 2003 and 2004 but instead am due a refund.
I’m working to get a good accountant but find that most don’t know about tax shelters, estates, or any of the small business (home based) irs laws.
Please, this is serious. Don’t respond if you don’t have a quality answer for me.
Best answer:
Answer by NotEasilyFooled
The IRS generally does not assess any penalties if you VOLUNTARILY file a late form 1040 tax return AND no tax is due. If you owe tax, however, you can be charged 5% per month.
What do you think? Answer below!