IRS Tax Penalties - 5 Tips to Avoid Or Reduce Tax Penalties

You do not want to deal with IRS penalties. This is ataxpayers overlook because they believe the IRS is
great way to end up paying the IRS more than whatagainst them. Don't be so foolish! The IRS wants you
you actually owe them. Unfortunately, many peopleto pay your taxes, even if you do so over the span of
pay these year after year. There are a few thingsseveral months.
you can do to avoid or reduce IRS penalties. Do you4. Consider penalty abatement. If you have a good
know what they are?reason for not paying your taxes on time and/or in full,
Here are several tips to use if you want to avoid oryou may be able to have your penalties abated.
reduce IRS tax penalties:Reasonable cause can include things such as: death in
the family, natural disaster, unintentional destruction of
1. File on time. If you do not file your return on time theyour records, or a lengthy amount of unemployment.
IRS has the right to penalize you up to five percent per5. Hire a tax professional. No matter how hard you try,
month. The total penalty can reach 25 percent ofyou may find that you do not know enough about
what you owe.avoiding and reducing IRS penalties. This is when you
2. If you find that you cannot file on time you shouldcan hire a professional for help. A firm with experience
request a 60 day extension with the help of Formin this area will be able to help you in a number of
4858. This will give you another two months to getways.
your act together without having to worry about beingWith these five tips you should find it simple to avoid or
charged the five percent per month penalty.reduce IRS penalties. You do not want to find yourself
3. Request a payment plan if you find that you cannotpaying the IRS more than what you owe in taxes.
afford to pay in full. This is something that many