Tax Myth 1: The IRS will not notice if I do not file.
In the age of computers, this tax myth could not be further from the truth! TaxMasters has dealt with numerous cases where people mistakenly believed the IRS would somehow miss the fact that they did not file a tax return or decide to let them slide. The IRS continually gets more sophisticated in the way that they track tax returns, and they will notice if you do not file. They may not notice immediately, but they will find out and they will make you pay what you owe along with fines and penalties. In worst case scenarios, they can even send you to jail for not filing. Recently, Wesley Snipes was jailed for failing to file just three tax returns. Don’t let this be you!
Tax Myth 2: Since I am in the military, the IRS will cut me slack in having unfiled tax returns.
First of all, thank you for serving our country. One of our own, Major Fred Hackett, is currently deployed in Iraq. We have the utmost respect for our service men and women. Thats why we dont want you to get taken by this tax myth. Just like every other American, you have to file your taxes. The IRS is willing to give you extensions, but you must file for them. Do not just assume that you have one.
Tax Myth 3: People who file for extensions get audited more.
Nope. Audits are based off of what is on your return, not when you submit it.
Tax Myth 4: If I file an extension, I wont owe anything until the extension is due.
A company entering the market with a goal to do business shall have the following objectives:
Maximizing the returns on stockholders capital (wealth maximization) & and;
Profit Maximization
Unlike traditional business theories where maximum importance was given to profit maximization, modern theories lays down facts stressing on the maximization of wealth of its stock holders. Which means, maximizing the price of the stock/shares.
Profit maximization is a short term goal mainly for a period of one year or less. A company can maximize its short term profits at the expense of its long term wealth maximization. Stock holders wealth maximization is along term goal as stockholders are investing in a company expecting good-future-returns. Wealth maximization is preferable because it considers (1) wealth for long term, (2) risks, (3) stockholders returns and timing of the returns.
Timing of the returns is important, as earlier the return is received, the better. A quick-positive return reduces the risk involved in the investment due to time factor. Also, if you have quick cash in hand you can reinvest the same.
When we are discussing long and short term business objectives, we must keep in mind that very often profit maximization and wealth maximization are conflicting objectives. It is very important for an entrepreneur to decide that what is his priority, longer term business or short term business. Very often you will find business starting off very well but ultimately going down to competition. They never invest in modernization and expansion of their business process. Hence better companies with good technology took over it.