Interest and Tax Penalties That IRS Can Charge You with
IRS can charge anyone for any sort of tax penalty for being responsible as a taxpayer. The IRS automatically assess certain penalties when you miss the due date or don’t do the tax payment on time. The other penalties are assessed only when the IRS team gets to know that you have violated the tax law by committing tax evasion and tax fraud.
You can minimize or avoid IRS tax penalties by filing the right tax returns and pay it on time, make sure that you know how much are IRS tax penalties. When the IRS bills you with a tax penalty you will be could use the penalty abatement for the reduction of the sum you owe.
Penalty for filing failure when the taxes are owed:
The penalty for late filing is five per cent of the tax amount owed every month. 25 per cent is the maximum penalty for tax returns owed that are late for 60 days have a minimum penalty ranging between $210 or 100 per cent of the owed tax, any one that is less.
Interest Rate for non-payment or taxes underpayment:
The IRS rate for underpayment interest is made each quarter. The rate of interest for every individual taxpayer is made by taking short-term federal rates and adding 3 percent points to it. you will have to pay the interest in case you delay your payment even by a single day or in case you fail to pay the tax.
Interest and penalties for underpayment of taxes estimated:
When you fail to make the payment of the estimated tax amount or don’t make enough payments, the IRS can take charge.
Other than these there are many more ways that the IRS can make charges on you like:
- IRS audit Penalty.
- Penalties related to Accuracy.
- Dishonored check penalty.
- Tax fraud penalties.
- Tax evasion penalties.
- IRS penalty abatement.
Make sure that you as a taxpayer are responsible and punctual to avoid any sort of trouble.