IRS Tax Penalties: IRS Help Chicago
There are three major IRS tax penalties, and they can add up fast. Learn what they are and how to handle them.
Penalty #1: Penalty for failure to pay.
If you don’t pay the IRS on time they will charge you a late penalty of .5% per month that the taxes are late. This tax penalty cannot amount to more than 25% of the taxes owed and is only assessed on the amount still owed.
Penalty #2: Penalty for failure to file.
If you don’t file your tax return on time, the IRS is going to attach a penalty to your tax bill of 5% per month that the taxes are filed late. This can be waived if you prove that there was a “reasonable cause” for late filing.
Penalty #3: Interest
Interest is added to any taxes that are not paid at the time they are owed. The IRS can change the interest rate on taxes owed.
The best way to avoid penalties from the IRS is to take care of your taxes owed. If you do owe taxes, then be sure to file your returns to minimize penalties.
If you owe taxes and can’t pay them right away, then the best thing to do is work with the IRS to get them paid off. There are many programs available to help you do this, but they can be complicated and it’s not always easy to determine which one is right for you.
Tax Penalties? Don’t wait. Call Opem Tax Resolution – The Law Office of Steven A. Leahy, PC (312) 664-6649. Call Now to schedule your FREE 1 hour Consultation!