How business entities would obtain benefits from the suspension of tax compliance programs by the IRS?

How business entities would obtain benefits from the suspension of tax compliance programs by the IRS?

by | Mar 25, 2020 | COVID - 19, Deduction & Credits, global income tax, Investment & Income, IRS, Tax Break, Tax compliance, Tax credits, tax deadline, Tax Extension, tax filing, Tax implications, Tax Payers, tax return, Taxation, US Government

How business entities would obtain benefits from

the suspension of tax compliance programs by the IRS?

Tax Compliance programs by the IRS has been taking a series of steps related to tax legislation as an effort to alleviate the stress common people are facing due to the outbreak of COVID-19. The rapidly spreading COVID-19 has led to the reduction in sales, slowdown of businesses, people being laid off from their jobs and huge economic adversities. In such a chaotic situation, the IRS’s initiatives on the suspension of tax compliance would act as a boon for the taxpayers, especially for the business entities. 

How business entities would obtain benefits from the suspension of tax compliance programs by the IRS.One such major initiative taken by the IRS is the implementation of the “People First Initiative” which would help in providing relaxation to those business entities who are facing uncertainties related to their taxes.

People First Initiative

The People First Initiative includes the postponement of certain payments that are associated with the installment agreements and offers in compromise.According to IRS, these measures included under the People First Initiative would start from 1st April 2020 onwards and would continue up to July 2020.The major changes which have been included in the People First Initiative are the postponement of the payments which are related to the Installment Agreements, the Offers in compromise, Audits, and other enforcement activities.

Installment Agreements

  • The IRS has announced that it has suspended the existing installment agreements that were due in between 1st April and 15th July 2020. Those taxpayers who are not able to comply with the terms of the installment agreement can suspend their payments due during this period. The IRS would also not consider any installment agreement of this period as a defaulter. However, the interest would be accruing on the unpaid balances. 
  • Also, the IRS has made provisions by which taxpayers either individuals or business entities who would not be able to make payment for their federal taxes can take the help of the monthly payment agreement by the IRS.

 

Offers in Compromise (OIC)

  1. The taxpayers who have pending OIC can provide additional information for support till 15th July 2020. Without the consent from taxpayers, IRS would not be closing any OIC which is pending before 15th July 2020.
  2. Taxpayers who have accepted OICs can suspend their payments until 15th July 2020. However, interest would be levied on the accrued balances which are unpaid.

 

3.Those taxpayers who are delinquent in the filing of their tax return for the year 2018, the IRS would not issue an OIC as a defaulter for them.

 4.Any delinquent returns of the tax year 2018 must be filed by the taxpayers either before or on 15th July 2020.

Automated Liens

and

Levies

According to the regulations of the IRS, no new automatic liens and levies would be carried out till 15th July 2020.

 

Activities related

to field collection

  • All activities related to liens, levies and any seizures associated with a personal residence that are initiated by the field revenue officers will be suspended till 15th July 2020. 
  • The field revenue officers will, however, continue to perform seizures and similar activities for high-income non-filers whenever needed.

 

Passport Certifications to the State Government and Private Debt Collection

  1. For the seriously delinquent taxpayers, the IRS would provide Passport certifications to the State Government. This procedure has been suspended currently till 15th July 2020.
  2. Moreover, new delinquent accounts will also not be forwarded by the IRS to the other private collection agencies for working on them until 15th July 2020.

Field, Office and other correspondence audits

  1. Any in-person field, office or correspondence audits will not be carried on till 15th July 2020. There can be audits or examinations remotely by the examiners of the IRS. Taxpayers should also co-operate with the IRS and provide all information that is requested for faster tax processing. 
  2. There might be some situations in which the taxpayers might be interested in the examination or audit. If the audit or examination is beneficial for the parties and the required IRS personnel are available then the audits/examination can start.

 

 

Refund claims

The IRS would continue to work on the processing of the refund claims without making any in-person contact.

Earned Income Tax Credit and

Wage Verification Reviews

  • The taxpayers have time till 15th July 2020 for responding to the IRS that whether they qualify for the EITC or their income has to be verified. 
  • Through 15th July 2020, taxpayers will not be denied these credits if they have a failure in providing the requested information.

 

Independent Office of appeals

The Office of appeals would be continuing to work on their cases. There might be a conference which would be held by telephone or through videoconferencing. For all the cases of the Independent Office of appeals, the taxpayers should promptly respond to any request made for information.

Statute of limitations

There would no disruption in the protection of the statute limitations by the IRS. The taxpayers are encouraged to co-operate with the IRS in extending those statutes whose expirations may be jeopardized. Otherwise, notes of deficiency would be issued by the IRS to protect the interests of the Government in the preservation of these statutes.

Conclusion

Hence, with these several changes being implemented by the IRS in the tax regulation the plight of the individual taxpayers and business entities would reduce by a considerable amount. With these tax relaxations and suspensions, business entities are sure to cope up with the losses that have been incurred due to the outbreak of COVID-19.  

References

https://tax.thomsonreuters.com/news/irs-suspends-certain-compliance-programs-due-to-covid-19/

https://www.forbes.com/sites/kellyphillipserb/2020/03/25/irs-will-ease-tax-payment-guidelines–limit-collections-activities-during-covid-19-crisis/#5a8cdb9c4dca

https://www.forbes.com/sites/robertwood/2020/03/25/irs-eases-installments-due-slows-audits-sweeping-relief-puts-people-first/#2eb525c93855

https://www.accountingtoday.com/news/irs-suspends-key-tax-compliance-and-enforcement-programs-to-adjust-covid-19-effort

  

 

Does the new tax deadline by IRS mean a new deadline for your IRA contribution?

Does the new tax deadline by IRS mean a new deadline for your IRA contribution?

by | Mar 23, 2020 | federal income tax, global income tax, IRA, IRA Contribution, IRS, Tax Extension, tax filing, Tax Payers, Tax Refund, tax return, tax savings, taxes, US Government

Does the new tax deadline by IRS mean a new deadline

for your IRA contribution?

The IRS Tax Deadline, The federal tax filing deadline in the US has been extended up to 15th July 2020 to combat the effects of economic hazards caused due to the outbreak of COVID-19. This extension would also mean that you can make contributions to the IRA up to 15th July 2020.

IRA and how it works?

In the US, IRA or Individual Retirement Account helps you in saving money for retirement in a tax-advantaged way. The money which you would invest in this account can grow in a tax-deferred manner until you are ready to retire. Usually, traditional IRAs and Roth IRAs are opened by individuals whereas SEP IRAs and SIMPLE IRAs are meant for small business owners and self-employed individuals. 

All the IRAs offer tax benefits which can be considered as a reward for saving. With the help of an IRA, you can even invest in stocks, bonds, and other assets. By making contributions to a traditional IRA, your tax bill would be reduced for the year in which you are contributing and you would not have owed income tax on the money until you withdraw it on your retirement. However, in a Roth IRA investments can grow in a tax-free manner but the contributions are not eligible for tax deductions. The withdrawal of the money can be done on retirement in a tax-free manner by investing in a Roth IRA as well.

The major benefits of an IRA can be listed below.

  1. Saving tool for retirement
  2. Cutting of tax bill
  3. The wider option of investments available
  4. Savior in any unexpected situation

By the IRA withdrawal rules, you can withdraw your money anytime from the IRA but by paying a penalty of 10% and a tax bill if your money has been withdrawn before the age of 59-1/2 years unless there is an exception.

Extension in IRA

contribution deadline

In case you have not been able to save much for your retirement in the last year, you can do that now as the IRA contribution deadline has also been extended. The IRS has extended this for 90 days without charging any penalties or interest for this.

You can contribute a maximum of $6000 towards the IRA. If you are above the age of 50 years then you can contribute an additional $1000 as a catch-up contribution. For making further contributions to your IRA you must contact the brokerage where your IRA has been held so that any additional funds that are added by you into the IRA are correctly filed.

Extension in the deadline for tax

owed on the income from IRA 

If you have taken an early distribution from your IRA or any other work-based retirement plan then you will owe an additional tax. This will be a 10% additional tax on the amount that can be included in 

gross income obtained from the early distribution. The deadline for reporting and payment of this additional tax has also got an extension up to 15th July 2020.

The major cause behind this is that this additional 10% tax is calculated and even paid at the same time as the income tax owed on the gross income. In case you are filing before 15th July 2020, then this extra 10% tax would be calculated at the time of filing itself.

Remove excessive

deferrals

In case, excessive deferrals have been made by you to your work-based retirement plans then those deferrals must be removed from the plan. This removal must be done by 15th April 2020 as those distributions need to be removed from the income and there has been no extension in this deadline. 

Conclusion

 Hence, the current situation is quite stressful for the people as the COVID-19 has led to several lay-offs and business closures in sectors that are customer-facing in nature. If you have extra cash now, you must contribute it towards your IRA and take one step ahead for your secure retired life.

References

  1. https://blog.turbotax.intuit.com/tax-news/what-the-coronavirus-relief-and-new-tax-deadline-mean-for-your-ira-contributions-46578/
  2. https://www.nerdwallet.com/article/investing/learn-about-ira-accounts
  3. https://www.cnbc.com/2020/03/24/you-have-until-july-15-to-save-in-your-ira-and-health-savings-accounts.html
  4. https://www.businessinsider.com/personal-finance/irs-extends-ira-retirement-health-savings-contributions-new-tax-deadline?IR=T
  5. https://www.forbes.com/sites/ashleaebeling/2020/03/24/ira–hsa-contribution-deadlines-extended-due-to-coronavirus/#2688e4c93808
Tax relief measures for small businesses during the coronavirus pandemic

Tax relief measures for small businesses during the coronavirus pandemic

by | Mar 21, 2020 | COVID - 19, federal government, global income tax, income tax credit, Investment & Income, Tax credits, tax deadline, Tax exemption, Tax Extension, tax filing, Tax Payers, Tax Refund, taxes, US Government

Tax relief measures for small businesses

during the coronavirus pandemic

The entire nation has been affected by the dreadful coronavirus. The rapid spread of the COVID-19 across the country has affected the economy on a very massive scale. The business operation across the country has come to a standstill especially in the case of small businesses that are tax relief measures. Social distancing and quarantining have led to a decrease in the number of customers coming to purchasing impacting sales. Numbers of employees are also not going on work as everyone is forced to stay inside for preventing further spread of the disease. In such adverse situations where there are huge economic disruptions, the Government is working towards passing legislation that would help in providing financial relief to the businesses and taxpayers.

The Families First Coronavirus Response Act

On March 13th, 2020, President Trump had declared a situation of national emergency along with open access of States and Territories to $50 billion for the shared fight against the disease. Again on 18th March 2020, the Senate had passed the Families First Coronavirus Response Act. This bill was signed by the President on that day which included the below-mentioned highlighted points.

1.Federally mandated paid leave benefits and paid sick leave are to be provided to the eligible employees. The paid sick leave must be provided to the impacted employees for 14 days at the regular rate of pay i.e. max $511 per day. Moreover, employers should also provide the benefits of paid leave to the eligible employees for three months.

2.The availability of tax credits for both employers and self-employed taxpayers have been mandated to reduce the burden of employers arising due to the paid leave

 

Extension in tax payment and tax return filing deadline

The US Treasury Department and the IRS had announced that the deadlines for filing tax returns and tax payments that are due on 15th April 2020 are extended up to 15th July 2020. This extension is applicable for making filing tax returns for 2019, Income Tax payments for 2019 and the estimated income tax payments for 2020.

If there is a tax refund due, then the Income tax returns must be filed as soon as possible so that the refund can be obtained immediately and put to use in this time of crisis.

 

Low-interest loans guaranteed by the SBA

 

When there is a tremendous drop in sales, it becomes quite difficult to manage business expenses, employee wages, bills, etc. In such a situation, a business loan can be taken but then it will have a very high rate of interest. So, to ease down these worries the President has announced that the Government would provide more funds in the federal disaster loans which are backed by the Small Business Administration (SBA).  The loans provided by the SBA are known as the Economic Injury Disaster Loan.These loans would help in providing relief for the qualifying businesses in the below-mentioned forms.

 

  1. Loans at low-interest rates i.e. 3.75% for businesses and 2.75% for non-profit organizations.
  2. Repayment plans are long term in nature i.e. up to a maximum period of 30 years.

If a small business is facing financial issues and is not able to afford bills related to the payroll expenses, fixed debts and accounts payable then it can apply for an “Economic Injury Disaster Loan”.

 

Moreover, the federal and state financial regulators have been encouraging the financial institutions to work in a co-operative manner with those borrowers who belong to the affected communities.

Cash Payment by the Government

Another measure taken by the Government to provide relief to the small businesses is by providing the Stimulus package. Under this package, stimulus checks would be provided to US adults. On 27th March 2020, President Trump signed the CARES Act into law.

By this Act, cash payments would be provided to adult taxpayers up to $1200 for a single person and up to $2400 for couples. If there is a child, then the amount of the stimulus cheque will include an additional $500.

Those individuals who have earned $75,000 in the adjusted gross income (AGI) on the Income-tax returns of 2018 will be receiving a lower amount. Also, those individuals who do not have a federal tax liability will receive $600 under this proposal.       

 

Deferment of

any amount

The IRS has also announced any amount can be deferred related to the Federal tax.  In the Notice 2020-18, the IRS had stated that “there is no limitation on the amount of payment that may be postponed”. Previously, there was a dollar limit on the tax that can be deferred but later on 21st March 2020 this limit has been withdrawn.

This deferment or the postponement of tax payment has only been announced for the federal taxes and is not applicable for any other tax like excise taxes and payroll taxes.

Conclusion

Hence, the various legislations and implementations of new tax laws would be helpful for small business owners to avoid sleepless nights due to tax payments in times of low sales and disrupted business.

References

https://ssfllp.com/coronavirus-covid-19-tax-relief-for-small-businesses/

https://www.patriotsoftware.com/blog/payroll/small-business-relief-coronavirus-pandemic/

 

All you need to know about the changes in tax rules due to COVID-19

All you need to know about the changes in tax rules due to COVID-19

by | Mar 18, 2020 | CARES, COVID - 19, federal government, FFCRA, Investment & Income, IRS, state government, tax deadline, Tax Extension, tax filing, Tax Payers, tax return, US Government

All you need to know about the changes in tax rules due to    COVID-19

On 13th March 2020, the US President had issued an emergency declaration in response to the ongoing COVID-19 pandemic. Due to COVID-19 the tax Rules have changed Since the outbreak of COVID-19 has caused huge harm to individuals and businesses, the Federal Government and the State Government have responded very promptly by making significant changes to the tax laws.  

FEDERAL EXTENSIONS: The IRS has announced for the extension of both tax payment and tax return filing deadline for several taxpayers including individuals, business entities, trust, etc. The tax payment and return filing deadline has been extended to 15th July 2020 which would have been 15th April 2020 otherwise. There would be a waiver of interest and late filing penalties for this extension  of these 90 days. This relief applies to a taxpayer’s 2019 income tax liability and the estimated income tax payments for the first quarter of 2020.

STATE EXTENSIONS: Although the tax implications and timelines are different for the states, still a majority of the states have extended their tax return filing and payment deadlines following that of the federal guidelines. However, there might be some states which have responded to this deadline extension separately. State responses to the tax deadline extension might apply to other categories of taxes as well apart from Income tax.

THE CORONAVIRUS STIMULUS PACKAGE: On 27th March 2020, the US President had signed an Act known as CARES i.e. Coronavirus Aid, Relief and Economic basis Security Act. This Act has been transformed into law which ensures a $2 trillion stimulus package. This will help in providing financial relief to business entities, individual taxpayers and even families. Also, by the coronavirus stimulus package taxpayers can avail of the benefits of advanced tax rebates.The taxpayers can receive stimulus checks up to $1,200 for individual taxpayers. 

 Joint taxpayers would receive stimulus checks up to $2,400 and an additional check of $500 in case of each qualifying child. The payment of this stimulus checks associated with COVID-19 would be done based on tax filings that have been done in 2018 or 2019. If a taxpayer has not yet filed the tax returns, then the information of 2018 would be used. The amount which would be paid now would be reconciled in the tax return of the next year depending on the 2020 situation. 

Moreover, the CARES Act also allows the Government to grasp the information of direct deposit in the income tax return filing of 2019 or the tax return 2018. This would help deposit the funds in the stimulus package directly into the taxpayer’s account by electronic means. 

So, in the present situation, it is advisable to file for 2019 tax returns soon and select to obtain the refunds by direct deposit method. By this, the IRS would be able to have the current tax filing information and direct deposit information which would help in the transfer of the stimulus amount conveniently. 

The FAMILIES FIRST CORONAVIRUS RESPONSE ACT (FFCRA): 

President Trump has signed the Families First Coronavirus Response Act into Law which would be effective from no later than 2nd April 2020. According to the guidelines of this Act, employers who have an employee count of less than 500 ought to provide their employees with paid sick leave and expanded Family and Medical Leave Act (FMLA) rights and free testing for COVID-19. 

  1. This Act also helps in providing two refundable payroll tax credits which would help the businesses to make up for the cost incurred with the mandated paid leaves.  The eligible employers can claim both the credits in amounts that are equal to 100% of the amount of family leave wages which are paid under the FFCRA.  
  2. Employers need to offer paid sick leave tax credit and paid family leave or “Child Care Leave” Tax credit. Self-employed individuals or small business owners are required to offer paid sick leave for those employees who are unable to work due to COVID-19 and would also receive sick leave tax credit which is equal to 100% of the wage amount paid. This amount of credit has been limited to $200 per day if the employee is not able to work if he is taking care of a minor child after the closure of his school or an individual under the self-isolation order.
  3. Employers can also obtain refundable family leave tax credit for the wages that are being paid to the employees who are unable to work as they are taking care of a minor child. The school or child care center of the minor is closed due to the outbreak of COVID-19. 

Conclusion

Hence, in these difficult times of national emergency, these changes introduced by the US Government would be highly beneficial for all the taxpayers as it would mitigate the impact of COVID-19 on individuals as well as business entities.

References

https://blog.turbotax.intuit.com/tax-news/is-the-tax-deadline-delayed-what-to-know-about-coronavirus-covid-19-and-your-taxes-46320/

https://www.bradley.com/insights/publications/2020/03/update-on-federal-and-state-tax-responses-to-covid19-pandemic

 

How exactly do you process a tax refund as an NRI in the US?

How exactly do you process a tax refund as an NRI in the US?

by | Feb 5, 2020 | 1040-NR-EZ, Form 1040-NR, tax filing, Tax Refund

How exactly do you process a tax refund as an NRI in the US?

In the US, Do you process a tax refund if you are an NRI then while filing your tax return you would be considered as a Non- resident alien in the country. A non-resident alien is an alien who has not cleared the green card test or has not cleared the substantial presence test. However, in case if you are a nonresident alien at the end of the tax year but your spouse is resident alien, then you can be treated as a ‘Resident alien’ for tax purposes. This can be done by your spouse by filing Form-1040 and using the status ‘Married filing jointly’.

When an NRI must file a tax refund in the US?

You should file a tax return when you are engaged or being considered to be engaged in any trade or business in the US during that particular year.

Even when you are not a part of any trade or business of the US but you have income in the US upon which the tax withheld at the source does not seem to be satisfactory.

You should file a tax refund under the below-mentioned circumstances.

  1. When you are willing to claim a return of any excess withholding or tax overpaid
  2. When you are willing to avail of the benefits of any credits and deductions. For instance, you are not involved in business activities in the US but have income from US property which you are considering as effectively connected income.

Which income needs to be reported?

The income of an NRI which is taxable in the US is mainly classified into two categories.

  1. The US source income is fixed, determinable, annual or periodical.
  2. Income which is effectively connected with either trade or business in the US.

Which forms to be filed by NRIs in the US?

Non-resident aliens are required to file their income tax returns by using the below-mentioned forms.

  1. Form 1040-NR, US Non-resident Alien Income Tax Return or
  2. Form 1040-NR-EZ, US Income Tax Return for Non-resident aliens having no dependents.

You will have to fill Form 1040-NR in case of the below-mentioned circumstances.

  1. You are a non-resident alien who is engaged in any trade or business happening in the US.
  2. You represent a deceased person who needed to file Form 1040-NR.
  3. You represent an estate or a trust which had to file Form 1040-NR

For Form 1040-NR-EZ, you must be having income from the various sources in the US in the form of salaries, wages, tips, scholarship or fellowship grants, refunds from State or local income taxes, etc. Moreover, you must not have any dependents for being able to file Form 1040-NR-EZ.


What is the deadline to file Income Tax Refund by an NRI?

  1. In case you are an employee in the US and you receive wages that are subject to taxes under the US tax laws, then you must file your taxes by the 15th day of the 4th month after the end of the tax year. 
  2.  In case, you have an office or you have a place of business in the US then you should file your tax refund by the same schedule mentioned above  i.e. 15th day of the 4th month after the tax year’s end.

Ideally, if you are filing your tax returns as per the calendar year then you must do it by 15th April of the year.

3. In case, you are not an employee who receives wages or you do not have any office/business in the US then you can file your tax return by the 15th day of the 6th month after the end of the tax year.  This means if you are filing your tax return according to the calendar year, you must do it by 15th June.

The Form 1040-NR and 1040-NR-EZ must be sent to the addresses which are mentioned in the instructions of the forms while filing. Suppose, you are not able to file your return by the due date you can request for an automatic extension by filing Form 4868.

Conclusion

Hence, by filing your tax refund on time and in the correct procedure you would be able to avail the benefits on deductions and credit. 

Reference

  1. https://www.irs.gov/individuals/international-taxpayers
  2. https://www.irs.gov/individuals/international-taxpayers/nonresident-aliens
  3. https://www.irs.gov/individuals/international-taxpayers/taxation-of-nonresident-aliens

 

All about filing your taxes in the US: The When, the Where and the How

All about filing your taxes in the US: The When, the Where and the How

by | Feb 1, 2020 | tax filing, tax form, tax returns

All about filing your taxes in the US: The When, the Where and the How

In the US, filing your taxes on time is considered quite important. If you are not filing your taxes on time, then you might have to pay heavy penalties. For avoiding paying heavy penalties, you must know in detail some essential aspects related to taxes.

The major aspects which are related to taxes in the US are

  1. When to file the tax returns?
  2. Where to file the tax returns?
  3. How to file the tax returns?

Let us know about each aspect in details.

a. When to file the tax returns?

In case you are a tax filer as per the calendar year, then the end of a particular tax year for you is on 31st December. In this case, you have to finish your process of tax filing by 15th December of each year. Suppose, you are using a fiscal year i.e. tax year which is ending on the last day of any month but not December then you will have to file your tax returns by the 15th day of the fourth month after your fiscal year has been closed.  In case of the tax return for the year 2019, the tax payment due date is 15th April 2020. 

If you are filing your tax returns by the help of mail, then you will have to ensure that the mailing address to which you are sending the document is correct and the documents are deposited on time. In case of filing a tax return by electronic means, you should ensure that the date and time in your time zone must be accurate as it determines whether your tax filing has been done on time or not.

In case, you are not able to file your tax returns by the due date then you will have to request an extension in the time needed to file the taxes. You can use Form 4868 to obtain an extension of 6 months automatically. For this, you will have to pay interest and also there might be a penalty charged on you for non-payment of tax by the due date.

b.Where to file the returns?

If you are filing your tax return electronically, then you should not be worried about the area where it will be sent. In case, you are filing your tax return by physical means or by paper then you will have to send it to the correct address which is mentioned in the form that you are filling. 

If you have a balance to be paid at the time of filing your tax return, then you can make the payment by IRS Direct Pay. In case you are filing your return by paper, then you will fill Form 1040-V and send your cheque or money order along with the form.

  • The cheque or money order which you are going to send must be prepared as payable to “United States Treasury”.
  • You should not staple your tax return, Form 1040-V and payment together. They should be left loose and placed in an envelope.
  • On the front side of your payment, you should include your name, address, TIN, tax year and the category of form which you are including.
  • It is advisable not to send cash along with your return.

c.How to file the tax returns?

You can file your tax returns either by electronic means or you can mail your tax returns in paper form. Mostly, it is advisable to file your tax returns by electronic means as it is convenient and even a faster process.  When you are mailing your tax return, it will take around six weeks to eight weeks for processing. In case, you are preparing your tax returns by using professional software then there might be the need to pay additional fees to file the return.

If filing tax returns by paper form, you should use the Form 1040 or Form 1040-SR. Along with these forms, you also need to attach some other documents like a copy of Form W-2, Form W-2c which is a corrected form Form-W2, Form-W2G and Form 1099-R if a federal income tax was withheld, etc. 

For electronic filing, you will have to use the e-file method. For this, you can use self-select PIN which will act as your digital signature when you are using tax preparation software. The self-select PIN will allow you to make your electronic signature while filing your Income Tax Return by selecting a five-digit PIN. 

Conclusion

So, you must know in detail about these important aspects associated with filing your tax returns in the US. This basic information makes it easier for you to file your tax returns accurately on time thus avoiding heavy penalties. 

Reference

  1. https://www.irs.gov/taxtopics/tc301
  2. https://www.irs.gov/faqs/irs-procedures/signing-the-return/signing-the-return-0