Hello,

I have been asked by the IRS to file tax return for the tax period 12-31-2005.

By the time, I was an international student in the U.S. working as an independent contractor. I received the 1099 Misc Form from my former company showing the total amount of 18600 USD in box 7.

Since I returned to my home country (Germany) a while ago and my postal address in the U.S. has changed, I was not able to receive the 1099 Misc and the notice from IRS to file tax return on time.

I filled out the 1040NR together w/ the Schedule C/EZ.

The total taxable income is 18600 and tax was not withheld so far. So I still have to pay tax for that amount.

My questions are:
How much is the penalty for filing tax return not on time and if you owe money how much is the penalty for that? Can somebody explain it to me how much money this would be in my case?

When was the tax return for 2005 due?

What is a reasonable reason the get the penalty waived? In my case, is it enough to say that my postal address has changed because I returned to Germany and therefore I could not receive the 1099 Misc and the notice from the IRS?

Thanks for your help.

CKroll

The penalty can be as high as 200% of the taxes owed. For you, the penalty is more likely to be about 25% plus interest.

The interest CANNOT be waived.

However, you can request a waiver of the penalties if you can show good cause for not filing on time. Not sure the reasons you state are good cause, ut it does not hurt to ask. If you have not had any previous problems with the IRS, your chances for a waiver are pretty good.

The 2005 tax return should have been mailed by April 17, 2006.