All You Need To Know About IRS Tax Penalties And How Tax Relief Professional Can Help

Taxes can be a confusing and complex subject. From filing deadlines to payment plans, there is a lot of information to keep track of. One of the most important things to be aware of when it comes to taxes are IRS Tax Penalties. More info about them and discover how a Tax Relief Professional can help you avoid these penalties in this article!

What are IRS Tax Penalties?

There are a number of IRS tax penalties that can be applied to individuals and businesses who don’t pay their taxes on time, or who don’t file their tax returns. The most common penalties are late filing penalties, late payment penalties, and failure-to-pay penalties.

Late Filing Penalty:

If you don’t file your tax return by the deadline, you will be subject to a late filing penalty. The penalty is 5% of the unpaid taxes for each month (or part of a month) that the return is late, up to a maximum of 25%.

Late Payment Penalty:

If you don’t pay your taxes by the due date, you will be subject to a late payment penalty. The penalty is 0.5% of the unpaid taxes for each month (or part of a month) that the payment is late, up to a maximum of 25%.

Common Types of IRS Tax Penalties

There are a few different types of IRS tax penalties that you may be subject to. The most common is the failure-to-pay penalty, which is assessed at 0.5% of the unpaid tax balance for each month or partial month that the balance remains unpaid. This penalty can add up quickly, so it’s important to pay your taxes as soon as possible.

If you owe taxes and don’t file a return, you’ll be subject to a failure-to-file penalty of 5% of the unpaid tax balance for each month or partial month that the return is not filed. This penalty is assessed on top of the failure-to-pay penalty, so it’s important to file your return even if you can’t pay the full amount due.

If you file a return but it contains errors, you may be subject to an accuracy-related penalty. This penalty is generally 20% of the additional tax owed due to the errors on the return.

These are just a few of the more common IRS tax penalties. If you think you may be subject to any of these penalties, it’s important to speak with a tax relief professional who can help you navigate the complex world of taxation and avoid these costly penalties.