AboutJohn Stancil, CPA Expertise I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Society of Tax Professionals, and the Institute of Management Accountants.
Experience I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper.
Question I was wondering what type of penalty is there for filing exempt. I also want to know if I will have to pay the taxes back being that I am a full time student (can provide proof). I was told that full time students are exempt from paying the taxes back at the end of the year.
Answer Lester,
Thanks for your question.
First, full time students do not have any special tax privileges. They owe taxes on their income just like anyone else. Frequently, their income is low enough that they do not owe taxes, but that is due to their income level, not their student status.
Second, when you file at the end of the year, if you have paid in more than your tax liability, you get a refund. If you have paid in less, you must send in a payment.
The penalty would depend on what they decided to charge you with. Filing as exempt when you are not is a fraudulent act, and could result in a penalty of 75% of the understated tax. If they allege criminal fraud, the penalty could be up to $100,000 and/or up to 3 years in prison.
