| Every year working people know the drill about filing an | | | | tax penalty, then it is best to take care of it as quickly |
| income tax return. Whether you owe money or are | | | | as possible. Your tax professional will help you and will |
| due a refund, you are still responsible for filing a tax | | | | gather all the information you need. If you are the |
| return and complying with the tax codes and laws. | | | | subject of a failure-to-file penalty, this fine is calculated |
| Some people file their own tax returns while some | | | | from the deadline date of the tax return. It is 5% per |
| people will retain the assistance of a tax professional | | | | month that the tax return is late and this IRS late filing |
| to file their yearly income tax returns for them. If you | | | | penalty has a maximum of 25% of the balance due to |
| find that you are in a position to owe an IRS tax | | | | the IRS. |
| penalty, then if you don't already have tax professional | | | | A failure-to-pay penalty is calculated upon the amount |
| then you definitely need to get one. | | | | of money you owe if you have underpaid the IRS. The |
| IRS tax penalties: What you do not know can cost | | | | minimum amount of.05% is assessed for each month |
| you! | | | | you owe the taxes, and will keep being added on until |
| An IRS tax penalty can seem like a very intimidating | | | | you pay off the fines. This amount may not appear to |
| situation, but you can find out if you are eligible for | | | | be much, but the longer it goes on and when factored |
| hardship considerations. This can mean the difference | | | | into any other amounts you owe, you can have a |
| between owing possibly thousands of dollars and | | | | large IRS tax penalty before you know it. |
| maybe being able to have the tax penalty forgiven or | | | | Interesting facts about interest rates |
| reduced. If you are not sure where to begin, then talk | | | | As for any interest you may owe, this is based on |
| to your tax professional and explain the situation. Once | | | | how much tax money you owe. Interest rates change |
| they know what is going on, they can apprise you of | | | | quarterly and will accrue quite rapidly. Once you are |
| your options and responsibilities. | | | | given an IRS tax penalty, you can expect the amount |
| If you owe back taxes to the government, the IRS will | | | | you owe is going to fluctuate because of the interest |
| assist you an IRS tax penalty and figure in the interest | | | | involved. The rate of interest is added to your tax fine |
| on the amount as well. However, it is very simple if you | | | | daily and the rate is currently at 5%, which is a yearly |
| do not owe any money then there is no fine. There | | | | rate. There are lessons to be learned when dealing |
| are three types of penalties: failure-to-file, failure-to-pay | | | | with the IRS interest and penalties. If you find you may |
| and interest. The differences between the fines are | | | | need additional time in filing a tax return then, have your |
| something that your tax professional can explain to | | | | specialist file an extension for you. No matter what |
| you in detail. IRS penalties are calculated quite | | | | happens; if you have a tax professional on your side |
| differently so if you are unsure then don't worry your | | | | you are more likely to have a better outcome. They |
| tax professional will also know about the process and | | | | will deal with all the information and work with the IRS |
| take care of it for you. | | | | on your behalf and are adept at all kinds of tax |
| How penalties are assessed | | | | situations. |
| If you find yourself in a position of owing an IRS late | | | | |