If anyone is interested in reading horror stories in full, you can open Chapters 15 and 16 of the Tax Code of the Russian Federation, and also look through the Code of Administrative Offenses. It describes in detail who is being held accountable and for what, and what the cost of playing hide and seek with the state is.
We will focus on the most common fines for individual entrepreneurs for failure to submit reports.
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Failure to file a tax return
This includes all declarations of entrepreneurs under different regimes - OSNO, simplified tax system, UTII, Unified Agricultural Tax, as well as calculations of insurance premiums submitted by employers.
If you do not submit any of this on time, be prepared to pay 5% of the tax on your return for each month that is overdue, even if it is incomplete. Maximum – 30%, minimum – 1,000 rubles. The minimum is worth paying attention to for those who were supposed to submit and did not submit a zero declaration.
The same sanctions are provided for failure to submit calculations for insurance premiums.
A fine for failure to submit reports is not everything.
10 days after the delay, the Federal Tax Service has the right to block the current account and most likely it will use this right.
To free your money from seizure, you will first need to make amends, that is, send a declaration, and then go to the Federal Tax Service inspectorate with an application to unblock the account. And until all this is done, you will not be able to use the money in your accounts, and this paralyzes your work.
And that is not all. The Code of Administrative Offenses also provides for liability for those who ignored the obligation to submit a declaration - from 300 to 500 rubles.
What happens if you don’t submit reports?
How to submit a tax return via the Internet for individual entrepreneurs - where to do it
Failure to provide reporting leads to the fact that first there will be a fine and penalties for payment, and then desk audits. And then there will be more severe penalties, for example, a ban on registration actions on the entrepreneur’s property (car, real estate) and a ban on leaving the country abroad if the amount of debt exceeds 30,000 rubles. An individual entrepreneur may receive a fine for failure to submit a declaration, for 2021 the amount is 1000 rubles.
If you do not submit reports on time, the individual entrepreneur faces a fine.
Attention! The entrepreneur undertakes not only to submit a tax report on income, but also to pay insurance contributions for himself and his employees (if any) for compulsory pension insurance and compulsory health insurance.
Contributions are paid until December 31 of the current calendar year. Previously, they were paid to the pension fund, but in 2021 payment is made to the Federal Tax Service. When paying contributions and taxes, you always need to double-check the BCC (budget classification code), it can change from year to year, official information is on the tax authority website. Closing an individual entrepreneur does not give any concessions; you also need to remember to submit reports for the current tax period.
Non-payment or incomplete payment of taxes
This includes all taxes, workers' compensation and sales tax. The fine is quite large - 20% of the unpaid amount. If Federal Tax Service employees can prove that you did not pay intentionally, then it will increase to 40%. Confirmation in Art. 122 NK.
There are also penalties that begin to “drip” from the day of delay until the day preceding the day of payment of the debt. They are calculated based on a rate of 1/300 of the Central Bank refinancing rate.
Simply put, to calculate penalties for one day, you need to divide the refinancing rate by 300 and multiply by the amount of the debt. The total payment will depend on the number of days overdue.
If you do not pay the tax on time, then you will face both a fine and penalties, and if you make advance payments, then only penalties.
Another trouble for non-payment of taxes is the seizure of the current account for the amount of the debt. The tax authorities will give such an order to the bank if you do not comply with the requirement to pay taxes within 8 days.
Failure to pay on an especially large scale is subject to the Criminal Code and the threat of imprisonment. There we are talking about millions, so this rarely concerns individual entrepreneurs, but we still voiced it. Just in case.
Fines for individual entrepreneurs for failure to submit reports to the Pension Fund
Only individual entrepreneurs with employees submit reports to the Pension Fund. The reporting consists of two documents: information about the insured persons and information about the insurance experience of employees. Entrepreneurs submit information monthly, before the 15th. Information - annually, until March 1. The fine for individual entrepreneurs for failure to submit reports to the Pension Fund on time is 500 rubles.
| Reporting | Nearest deadline | Fine |
| Information about insured persons SZV-M for January | February, 15 | 500 rubles for each insured person |
| Information about the insurance experience of insured persons SZV-STAZH | March 1 | 500 rubles for each insured person |
Gross violations of accounting rules
Serious Article 120 of the Tax Code of the Russian Federation with serious sanctions. What exactly is meant by gross violations is listed in the same article (lack of primary documents, etc.).
If such facts are discovered in one tax period, they will impose a fine of 10 thousand rubles, and if more than one period, then 30 thousand. Well, if these violations also lead to an underestimation of the taxable base, then you will have to fork out 20 percent of the unpaid tax or insurance premiums.
But don’t be happy if 20% of your arrears is only a few hundred, because the minimum you will pay is 40 thousand.
The Code of Administrative Offenses prescribes a penalty of 5 to 10 thousand rubles for such violations, and up to 20 thousand for repeated violations.
Deadlines for filing a declaration in 2019
A tax return is a mandatory document for all individual entrepreneurs. Even if a person has not received income from his activities, this does not relieve him of responsibility. The main function of the document is to control the procedure for calculating and paying taxes. A frequent question: “When does an individual entrepreneur submit a tax report?”
If you don’t pay taxes as an individual entrepreneur, what will happen and what fines will you face?
Our country has various taxation methods, each with its own reporting deadlines.
OSNO – general taxation system
There are no concessions, full tax payments and complicated reporting, which makes it difficult to do your own accounting. If there are no employees, you will have to submit a VAT return once a quarter, 3-NDFL - once a year, 4-NDFL - from the moment of entrepreneurial actions or within a month from the moment of 50% decrease or increase in income. VAT payers submit reports only electronically.
STS – simplified taxation system
People call it “simplified”; it is a kind of gentle procedure for accounting and paying taxes for small and medium-sized businesses. For the simplified tax system, the following conditions must be met: the number of employees is up to 100 people, the profitability of the business is less than 150 million rubles. Within the framework of the simplified tax system, you can choose what the object of taxation will be - income (6%) or income reduced by the amount of expenses (popularly “income minus expenses”).
Important! For persons using the simplified tax system, the declaration must be submitted only once per calendar year. The deadline is April 30 of the following reporting year. It is advisable for individual entrepreneurs to report for 2021 by April 30, 2021. The fine for failure to submit a declaration according to the simplified tax system for individual entrepreneurs is impressive.
UTII – single tax on imputed income
Under this regime, the amount of income received by the entrepreneur is not important; the amount of imputed income is taxed. code. UTII can be applied by persons who are engaged in retail trade, consumer services, etc. Not all businessmen can apply this regime, for example, beer (and alcohol in general) even for retail sale is not subject to UTII.
Attention! According to UTII, the declaration must be submitted once a quarter no later than the 20th day of the month following the reporting quarter.
For 2021, an entrepreneur needs to submit reports on UTII 4 times:
- for the 1st quarter until April 20, 2021;
- for the 2nd quarter to July 20, 2021;
- for the 3rd quarter until October 20;
- for the 4th quarter to January 20, 2021
To pay contributions, you need to make the correct calculation
Such responsibility and reporting deadlines are regulated by the Tax Code. The fine for failure to submit an individual entrepreneur’s declaration can be significant, so there is no point in delaying it.
Penalties for failure to submit reports on time
If an organization or individual entrepreneur still does not submit a declaration on time, he may be subject to sanctions or a fine for failure to submit the declaration. In 2018, the penalty amount was 5% for each month of delay, up to a maximum of 30%.
It turns out that, having been overdue for six months, you will need to pay an impressive amount, which is not very good for enterprises and individual entrepreneurs, especially for individual entrepreneurs, because all responsibility will fall on one person. And for an LLC, payments will be simplified by the availability of capital and the possibility of holding the relevant employees accountable.
The fine is invoiced only when the company submits a declaration that is already overdue. Indeed, if the reporting is not submitted on time, the declaration submitted later will be fined, these are the rules.
The minimum fine for late filing of a declaration is 1,000 rubles. This can happen if, due to a delay in submitting the declaration, the individual entrepreneur nevertheless provided a zero declaration after the deadline, meaning that the activity was not actually carried out, and therefore there is nothing to take tax from.
A situation may also occur when the responsible employee is also fined for late delivery. This happens in cases where the delay was caused by the employee himself and only in an LLC; an individual entrepreneur cannot receive such penalties for late dispatch.
In some situations, it happens that the company not only did not submit a declaration, but also did not pay taxes (various prepayments, contributions and advance payments under the simplified tax system also apply to such cases). Then a fine is imposed for late payment of tax or a fine for non-payment of tax according to the simplified tax system, if only the contributions have not been paid.
Responsibility for late payment of tax under the simplified tax system is much more serious than for late submission of a document. Here the punishment for non-payment will be much more serious - up to and including criminal liability for evasion or falsification of official papers.
Also, in addition to fines, the Federal Tax Service may decide to block the company’s current accounts if the delay in submitting the declaration exceeds 10 working days. In such cases, the actual activities of the organization are sharply slowed down due to frozen funds, accordingly forcing the enterprise to quickly prepare and submit reports.
Deadlines for filing a single tax return
The law of the Russian Federation establishes that tax returns must be drawn up strictly according to the form and submitted to the tax authorities at the end of each reporting period: a year, 9 months, half a year or quarter. There are also strict rules and clear reporting dates for different situations and types of taxpayers.
- All organizations working under the simplified tax system must draw up a declaration exactly following the form established by the Federal Tax Service of Russia in order No. ММВ-7-3/352 dated 07/04/2014.
- All declarations are submitted to a specific branch of the Federal Tax Service: either at the place of residence of the individual entrepreneur or at the registration address of the organization.
- All reports are submitted for the reporting period once a year. The last day for accepting a declaration for legal entities is March 31, and for individual entrepreneurs - April 30.
- If a company or entrepreneur that used the simplified tax system has stopped working, they are required to submit a declaration by the 25th of the next month after the termination of activity.
- If the right to use the simplified tax code is lost, reporting must be submitted no later than the 25th day of the month following the last reporting period on the simplified tax system.
Even with clear deadlines, sometimes non-submission occurs. For failure to submit on time in accordance with the taxation system under the simplified tax system in 2021, punishment is expected. So, violation of filing deadlines or failure to submit reports at all entails a fine, and if the debt is already quite significant, then this fine can greatly hit the organization’s budget.
