If you are late in filing your taxes, telling the IRS that your dog ate your tax documents won't fly. But don't worry. There are several reasons which are accepted by this agency and you will be surprised what they are.
Here are some of the actual 'reasonable explanations' offered by Cari Weston, the director of taxation at the American Institute of CPAs. She had seen these reasons used by many late tax-filers, and accepted by the IRS, in her many years as a tax consultant.
1. Health Issues
If a taxpayer suffered from a prolonged illness which adversely affected his short-term memory and made it difficult for him to concentrate, the IRS will let him off the hook.
2. Burglary
If the taxpayer's house was robbed and his computer which contains all his tax related documents was stolen, he will not be penalized by the agency.
3. Mourning
If the taxpayer's next of kin died and he is in a period of mourning, the IRS will not be hard on him.
4. Fear of the IRS
If a tax payer was laid off and was intimidated by Schedule C instructions. He was crushed and stopped filing his tax returns for a number of years, and his anxiety and fears increased.He asked a CPA to organize his financial book. When all returns were filed and taxes computed, the IRS waived all penalties, since they found out that the taxpayer had no malicious intent.
Normally, the deadline for tax filing falls on April 15, unless that day falls on a Saturday or Sunday. For this year the day falls on a Friday, and yet the deadline is set for April 18, the following Monday.
The reason is that April 16 is Emancipation Day but this year it falls on a Saturday. The law requires that it be moved to the nearest business day which is April 15.
For the residents of Maine and Massachusetts, it is on April 19, Tuesday in deference to St. Patrick's Day which falls on April 18.
