Tax problem and $1,100 penalty?
Saturday, December 12th, 2009In August, I started an online-based company in Texas. When I got the first tax filing paper, I filed the return on the same day via WebFile (online). Three months passed and I never got another return. There was no sale either on my website so the company was completely out of my mind. Two weeks ago, while going thru my emails, I found the confirmation email from the first return filing, and realized that i hadn’t filed anything in about three months.
I logged into WebFile and filed the return (again, the return was $0.00 since there were no sales). The return was filed about a month late (the due date was 10/20/2008 and i filed it on 11/28/2008).
Today, I got a notice in my mail that i owe the state $1,100 as since I didn’t file a return, they estimated the return for me and the $1,100 is due in 20 days.
Is there anything I can do here? I would hate to pay $1,100 in taxes when i have made $0.00 worth of sales on my website. Should I go for a hearing? If so, what all do I need to take with me? Do I need an attorney or a CPA to help me here?
Please help!!! I do not want to pay for taxes that I don’t owe. Also, I know that had i gotten the notice in the mail, I would have filed it right away.
Any suggestions?
Reading Texas Tax FAQ, it states that “If you fail to file a required sales tax report, the Comptroller’s office will send you an estimated billing, with instructions to file a report providing your actual sales data for the estimated period. Please be aware that failure to file or pay a sales tax report may result in collection actions, including, but not limited to, additional late filing penalties, liens, and criminal charges.”
As I mentioned, I have already filed the taxes – albeit late. Does this mean that the $1,100 bill I received will be dismissed?
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