Business Taxes

All registered businesses must file an annual income tax return to the state's office except partnerships which file information return known as the annual report. The form you use depends on the organization and type of your business. There are different requirements of taxation as per the category of your organization and there is a separate legal procedure for each business type.
The Internal Revenue Service (IRS)
Failure to abide by the rules and regulations of the taxation department of the United States will put you in some serious trouble and you will be subjected to different sanctions and penalties. The Internal Revenue Service (IRS) is primarily responsible for indicting penalties at the Federal level. The IRS can affirm only those penalties which are specifically imposed under Federal tax law. There are different rules at the federal and local level and you need to abide by them all.
Penalties can be of different severity and intensity depending upon the offense. There may be monetary penalties in the beginning and if you don't pay the fine in time, it can lead to forfeiture of property. Criminal penalties are imposed sometimes and the culprit is imprisoned for a limited amount of time but is imposed only by a federal judge after the defendant is proved guilty.
Monetary penalties are based on the amount of tax not properly paid even after several notices. Penalties keep on increasing with the period of nonpayment and are dependent upon the time span of non-payment and the business revenue.
There are over 150 kinds of civil penalties in the U.S. Internal Revenue Code, depending upon the severity which is reflected in the amount of the applicable fines. There is some degree of relaxation if the taxpayer presents with some genuine reason for non-payment and penalties may be waived or abated.

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