The IRS can penalize taxpayers in many scenarios, including:
These penalties are often assessed as a percentage of the taxes owed. For example, failing to file your taxes incurs a penalty of 5% of your unpaid tax bill for each month that your return is late. Additionally, you have to pay interest on the penalties that accrue.
The IRS implements these penalties to keep the tax system fair and effective. Without sanctions for not paying your taxes properly, people could easily skip paying the money that they owe. The IRS also understands that many taxpayers who fail to file their taxes or fail to pay them do so unintentionally and offer ways to avoid penalties or get penalties removed.
For example, people who have been penalized for the first time can get their penalties rescinded. You can also apply for penalty abatement due to reasonable causes that made paying or filing your taxes difficult or impossible, such as a death or serious illness in your family.
Dealing with IRS penalties is stressful, but there are many ways that you can get some or all of these penalties forgiven. Taxrezo’s tax professionals are experienced with the rules surrounding IRS penalties and how to get them removed from your tax bill.
If you owe money to the IRS and the IRS has started to assess penalties, we’re here to help. To learn more, call us today
Serving individuals and businesses in all 50 states, Tax Hardship Center provides tax debt relief from the convenience of your home.
