| IRS tax penalties and interest charges can cause | | | | 0.5% of the initial tax bill. Again, these are capped at |
| emotional distress and financial hardship. But make | | | | 25%. These penalties are certainly less than failure to |
| sure that before you attempt to tackle the issue, you | | | | file penalties, but they still can add up over time. |
| understand exactly why these penalties were imposed | | | | Taxpayers are often amazed (and of course |
| andwhat your legal options are to get them removed | | | | disappointed) when they file their returns 6 months or |
| or settled. | | | | so late and find out that their penalties and interest |
| Failure to file penalties are one of the most severe | | | | amount to 30-40% of the initial tax bill! This is what can |
| penalties that the IRS has in its arsenal. Failure to file | | | | put taxpayers into a financial mess that is hard to get |
| penalties are 5% per month (or part of month) up to a | | | | out of. |
| maximum of 25%. If you don't have the funds to pay | | | | If you are facing IRS penalties and interest rest |
| your tax bill, make sure that you at least file your taxes | | | | assured that you are not alone. Depending on the |
| and you can work out a payment arrangement with | | | | situation, you may be able to have the abated. Just |
| the IRS later. That way you can at least avoid failure | | | | make sure that you understand all the rights that have |
| to file penalties. | | | | been afforded to you under the law. |
| Failure to pay penalties are less onerous. They are | | | | |