Exact Answer: Within 120 Days
Filing is a term used to refer to the documents submitted to the IRS or Income Revenue Service department of the United States. This department looks over the working of taxes paid by the country’s citizens and makes sure that all the work is done correctly.
A citizen needs to visit the portal of the IRS website and needs to file the tax documents. After this, the person needs to fill in all the details of the taxes that he or she had paid. When all this is done, they can finally file the tax documents. After this, the workers in the IRS department verify all the details and make sure that everything is correct.
How Long To Pay Taxes Owed After Filing?
The IRS is an abbreviation used to connote the Income Revenue Service. It is a branch of the US government that oversees the collection of taxes from its citizens. All citizens who earn taxable yearly incomes have to pay a certain percentage of the same taxes to the government. This money is used for fostering development in the country. The IRS shoulders the responsibility of curating and maintaining the tax database of the country. Certain expenses made by an individual are eligible for tax rebates or refunds. This refund amount is generally deposited directly into the individual’s linked bank account by the IRS. However, sometimes due to technical glitches, the refund may be rejected by the recipient’s bank.
Every tax-paying citizen must link their operative bank accounts with the IRS. Filling taxes in the US requires the provision of all details vis-à-vis the financial standing of the individual. This includes his or her bank account number and all other related particulars. The general protocol followed by the IRS is that the amount refundable to an individual is directly deposited into the linked bank account.
|Events||Information Regarding The Events|
|Penalty on unpaid taxes||0.5% per month|
|Time limit to pay taxes||Within 120 days|
After a person has filed the tax documents, the IRS gives a time limit of up to 120 days to pay all the taxes. A penalty of 0.5% per month on the unpaid tax is also imposed on the taxpayer.
Why Does It Take That Long To Pay Taxes Owed After Filing?
The IRS handles tax collection, standardization of norms, database management, and refund disbursal for the entire country. As a bureaucratic organization, loopholes in management are only too familiar. Thus, it takes a while to process retrial requests for refunds that are rejected by banks. Moreover, in case of incorrect information being provided by the concerned individual about their account details, such dilemmas are pretty frequent. In such cases, the individual has to re-verify all the details as well as file numerous applications.
If the error is minor, like misinformation about the bank account details, the refund can be deposited into the account within a month. However, if the issue is a pretty complicated and multilayered one, it may take longer for the deposit to arrive. Moreover, sometimes upon encountering these errors, the IRS may decide to mail the cheque to the individual rather than following the straightforward route. In such cases, the cheque may take longer to arrive by post. It is safe to say that at least a window of three weeks is plausible in such instances.
It takes that long to pay tax because the amount can’t be paid at once by anyone. Many people don’t have that much money to pay the tax at once. If a person fails to pay the taxes in the given period, then legal actions can be taken against that person, and IRS officials have all the rights to take action.
Overall, it can be concluded that it is very much essential to pay the taxes after filing the income tax documents. If a person doesn’t pay taxes, this is a legal offense, and the person can be sent to jail. A penalty of 0.5% is imposed on the unpaid taxes left to be paid by a taxpayer.
On average, the time limit allotted for a person to pay taxes after filing is 120 days. A person must pay all the remaining taxes in this time frame. It is to be understood that no individual is above the law, and the law is the same for everyone. 120 days are allotted because it is not possible to pay all the taxes at once.