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A filing system only works if everyone knows how it organized and knows what to do when putting files in the filing system.
This entry was posted in Administrative Support, Filing Systems, Office, Office Organization and tagged Files, Files systems, Office Procedures, Small business, Tips. By not filing your tax return, you risk having the IRS prepare a substitute return for you.
You can request an automatic 6-month tax extension by filing IRS Form 4868 (and paying any tax due) by the original deadline, April 15. If you fail to file on time, a Late Filing Penalty will be charged at a rate of 5% of the unpaid tax. It may be possible for you to convince the IRS to reduce or waive a penalty, for either late filing or late payment, by showing you had reasonable cause for missing the deadline. You can find papers easier and save time looking for them.  To keep effective filing systems in your office, try these tasks.

By purging every year to make room in the files, it will not only help your filing system stay current but it will also make your system more refined with what is going on that current year. Write down the exact instructions for your filing system as a reference to others.  Hang it near your filing cabinet so everyone can refer to it. For example, copies of filed tax returns must be submitted to buy or refinance a home, acquire a business loan, or apply for Federal student aid. It is charged for each month, or part of a month, that the tax goes unpaid — up to a maximum penalty of 25% of your unpaid taxes.
For instance, you must be able to prove that bad health, a family emergency, or a natural disaster prevented you from filing your taxes on time.
You can file an amended return if you need to fix an error or even if you forgot to claim a tax credit or deduction. If you have several filing cabinets, make a map of the filing cabinets and label on the map what is in each drawer.  As a result, co-workers do not have to ask you where files are in the filing system.

In cases where one or more tax returns are past due, the IRS will hold onto the refunds until the late return(s) are filed, or until you provide an acceptable reason for not filing on time. If you can show reasonable cause for not paying on time, the late payment penalty may be waived.
Attach a statement to your tax return (IRS Form 1040) fully explaining the reason you failed to pay.

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