What are some examples of items that cause deferred tax assets or deferred tax liabilities?
For 1040s, any interest and penalty amounts are based on the balance due with the return. Consequently, if nothing is owed there would be no penalties or interest charged. Note that if you are due a refund, you will not receive it unless you file. However, the statute of limitations, (that is the time the return can be reviewed and additional amounts assessed), does not start to run until the return is filed. If you don’t file, years from now they may ask and require you to still prove exactly why you didn’t owe anything, and if you can’t (or don’t), they will assess a large tax…and then a penalty and interest for lateness too. In fact, when they see it missing, they may well just start by issuing an assessment and you would then have to prove them wrong. This is not the position you want to be in. You must file a tax return if your income is above a certain level. The amount varies depending on filing status, age and the type of income you receive. For example, a married couple both
