Legal Question in Tax Law in Georgia

Re: If dont pay taxer

I strongly advise all nonfilers to make and file returns as soon as possible. The filing of late returns or even the act of engaging a tax preparer to prepare late returns can negate the appearance of willfulness and fraud necessary to make a criminal case or invoke increased civil penalties.

Criminal penalties include imprisonment up to 5 years and monetary penalties up to $100,000.00, in addition to any other civil penalties that may apply. Civil penalties are calculated on the amount of any tax underpayment: for nonfilers/late filers the rate is 5% of the tax owed per month late up to 25%, if fraud is involved the rates increase to 15% and 75%, respectively. Also applicable are late payment penalties: 1/2% of the tax owed per month late up to 25%, the 1/2% increases to 1% for fraud. Finally, interest is calculated on the underpayment at IRS prescribed rates.