Knowing the new tax rules and implications on deduction are very important for everyone as, without the know-how of the latest tax rules, you can fall in big trouble. The tax rules and deduction keeps on changing and that’s why you should keep a Hawkeye on these changes and the best way to do so is by regularly checking the IRS websites and subscribing to the news feeds related to taxes that will keep you posted about the tax changes.
Recently, the IRS has ramped up its penalties for 2019 and if you are going to file your taxes then you must know about it. The IRS has witnessed its operational budget getting slashed over the past 8 years and therefore, it is looking for ways to increase its penalty against all those tax filing people who fail to file the taxes before or on the deadline.
The deadline for filing taxes is clearly mentioned on the IRS website but due to the laidback way of dealing with accounting issues and due to improper bookkeeping practices, there is a huge number of people who fail to pay their taxes on time and then they are left with two options; either to pay the penalty or file application for the extension.
In 2019, IRS is using its entire legislative rights implement the penalties on filing late taxes and for substantial underpayment in connection with offshore trust along with corporate structures. You should also know that there were numerous statutory penalties in the rule book of IRS which were not implanted or used due to some issues. But things have changed regarding such statutory penalties in 2019 as IRS is looking forward to enhancing its income by bringing these long–awaited penalties in action.
Now, penalties will be charged on late filed foreign trust, controlled foreign corporation, report of foreign bank accounts, report of foreign financial assets. Earlier, such penalties were not focused much and they were assessed in very rare cases but due to the decrease in the operational budget, now IRS will make these penalties a new normal in the tax funnel.
But along with the all such penalties, the current increase in the penalty seems to be more focused on the late tax filing and tax payment evident from recent e-mail notices sent by IRS. All the penalties which were ignored on the past will now be issued on an immediate basis.
Along with that, the latest dirty dozen tax list of IRS for 2019 also includes the ‘abusive tax evasion scheme involving trust’ and looking at the past records and things included in the dirty dozen tax scheme, it looks like that this is the first time when the IRS has included the above-mentioned evasion in its scheme. You should know that checking the dirty dozen tax list issued by IRS every year is also very necessary because it includes some of the most trending frauds and scams which are expected to grow in that particular year.
You can easily check the dirty dozen list of IRS on their official website and every week, they include a new scam or fraud in the list to make people aware about it. Some other scams and frauds which were included in the dirty dozen list for the first time were ‘syndicated conservation easements’ that are basically charitable contributions that fall under tax deduction under special circumstances but not in the way some promoters are structuring them.
So, go and check the new tax penalties included in the IRS leas in order to revamp its income and which will make some dust covered penalties to come into action. Along with that, you should also check the dirty dozen tax scheme of IRS as it will help you to be aware about the latest frauds and scams.