| No one likes to pay taxes, but you'll find that unless you | | | | came due to the date that the tax return is actually |
| take the time to do so and to do so correctly, you | | | | field, with five percent interest for each month the tax |
| may very well be facing some real problems later | | | | is due. There is a ceiling of 25% of interest that can be |
| down the line! You know that paying your taxes in full | | | | due. With a 2006 tax return failure to pay penalty, you |
| and on time is a good thing, but what happens when | | | | are starting with the amount of the tax that is owed. |
| you need to deal with file late penalties? The truth of | | | | There is a 0.5% amount of interest for each month the |
| the matter is that more people file late than you might | | | | tax is not paid in full, and there is no upper ceiling on the |
| think, and if you are in a position where you need to do | | | | amount of ceiling that can be levied. Finally interest is |
| so being able, being aware of the penalties can be | | | | based on the amount of tax that is owed, and the |
| quite important. | | | | interest rates will change every three months. The |
| When you are looking at file late penalties for 2006 | | | | interest is recalculated every day the balance is not |
| taxes, you are going to discover that you are going to | | | | paid in full. |
| be facing one of three different penalties. The first one | | | | These 2006 tax return penalties can be reduced and |
| is the most obvious is the penalty that you will face for | | | | reduced significantly if you are willing to file late but still |
| failure to file, the second is a failure to pay penalty and | | | | get an extension. Filing an extension is something that |
| the third is the interest that has accrued on the taxes | | | | can go a long way towards reducing the amount of |
| that you have yet to pay. Each one is calculated in a | | | | file late penalties that you are going to be dealing with. |
| different way and carries different amounts on it. | | | | Take some time and consider your options and make |
| With a failure to file penalty, you will find that it is | | | | sure that you deal with this problem as soon as you |
| essentially calculated on the time from when the taxes | | | | can! |