Unless that date occurs on a Saturday, Sunday, or federal holiday, when the return is considered timely filed on the next business day, individual tax return forms (Form 1040) are due on the 15th of the fourth month following the end of the tax year (i.e., 15 April).Taxpayers who are unable to file their federal income tax returns by the due date may be eligible for a six-month extension of time to file their tax returns.
There is an automatic extension of time for taxpayers who are unable to file by the due date.The taxpayer must meet the deadline for filing the US individual income tax return in order to submit Form 4868 (Application for Automatic Extension of Time to File the US Income Tax Return) by the due date.It is essential to keep in mind that submitting an application for an extension does not grant you additional time to pay your taxes.Interest of 12% will be charged for late payments.
A joint return can usually be filed by both spouses if one of them is a citizen or a resident of the United States.It should be noted that a joint return may still be filed if both spouses agree to be taxed on the combined worldwide income of both spouses as full-year residents, even if only one spouse is a citizen or resident for the full or part of the year.
The tax liability will typically be lower if you file a joint return than if you file a separate return.The only way to know for sure whether this is true or not is to thoroughly examine the facts and circumstances surrounding the taxpayers. The tax table for married people filing separate returns must be used instead by non-resident aliens who are married to non-resident aliens (i.e., when both spouses are non-resident aliens).Non-resident aliens cannot claim the position of head of household on their tax returns.
Period of Taxation
The United States does not have a specific tax year; however, it typically coincides with the calendar year, which runs from January 1 to December 31.
Payment of taxes
Those who owe federal income taxes must make their payment by April 15 to avoid accruing interest and penalties. With the exception of situations in which an applicable tax treaty or statutory exemption provides for a reduced rate of tax or exemption, foreign individuals who receive income from sources in the United States are typically required to pay tax at a rate of 30 percent on that income, which is collected through withholding. If an individual makes a payment of income from the United States to a foreign person, he or she must typically file a Form 1042 by March 15 of the following year, report the payment on Form 1042-S, and withhold and deposit the appropriate amount of tax with the United States government.
Withholding of income tax is required on employee compensation. A citizen, resident alien, or non-resident taxpayer who receives non-taxable income (such as self-employment income, interest income, dividends, etc.) is typically required to make quarterly estimated tax payments due on April 15, June 15, September 15, and January 15 following the conclusion of the tax year.
Non-resident aliens who do not have income that is subject to payroll withholding tax are required to make three estimated tax payments rather than four. These payments are due on June 15, September 15, and January 15, and 50% of the total amount is due with the first payment. In light of the COVID-19 pandemic, the IRS has recently announced that the deadline to pay estimated taxes for the first and second quarters of 2020 has been extended until July 15, 2020.
The Procedure For Conducting A Tax Audit
The United States’ tax authority is the Internal Revenue Service (IRS).An audit is an IRS examination of a taxpayer’s account and financial data in order to confirm the accuracy of the information reported and the tax amount reported on the taxpayer’s tax return, as the name suggests. A person’s tax return can be examined for a variety of reasons, and depending on the reason, the examination can take place in a variety of ways. The returns are selected through a computerized screening procedure, a random sample system, or an income document matching program. The individual can either agree with the proposed changes and pay any additional tax that is owed, or they can disagree with the proposed changes and appeal the decision, as soon as the individual’s tax situation has been examined and any changes to his or her tax situation are suggested.
Limitation Period
In most cases, the IRS can assess taxes three years after a return is filed or due, whichever comes first. Additionally, that date is referred to as the statute expiration date or the US tax law expiration date by another term. The amount of time that taxpayers have to file a claim in order to receive a refund or credit will also be limited by the statute of limitations.
Read more,
- Digitalisation & GST e-Invoicing Speed up Tax Compliance
- How does the Income Tax Calculator work
- Will I Be Able To Calculate My Income Tax