Every year, individuals who have taxable income are required to file their income tax returns (ITRs) especially those whose total income has exceeded the limit for exemption. They should be aware of the proper procedures set by their government when filing ITRs. The U.S. Internal Revenue Service (IRS) is the one responsible for filing and collecting tax in the United States.
IRS has the authority to require citizens of the United States, including those citizens living in other countries to file ITRs.
Income tax returns serve as the basis in determining if an individual deserves a refund. ITRs may be filed electronically or on paper. Different forms are used in ITR depending on the source of taxpayer’s income. Tax Day is considered by several U.S. citizens as the day they should be filing their ITRs to the IRS. This day usually falls on April 15 but it can be extended to accommodate special occasions such as holidays and bad weather conditions. The tax deadline in the U.S. for 2012 has been extended by IRS until April 17 since April 16 is announced as a holiday to commemorate the Emancipation Day.
Failure to submit an ITR on time is a serious federal offense and is punishable by law under Section 26 of the United States Code (USC). The penalty imposed on the failure to file depends on the date to deadline to the date the return was filed. The penalty for this offense usually range from 5% to 25% of the tax due.