When the IRS hits you or your business with a tax bill, it usually adds penalties and interest. These charges can be shocking – an old $6000 tax bill could have a $15000 tax penalty and interest charge added.
Some penalties, such as late payments, are added automatically by IRS computers. Or the IRS may impose penalties if they find that you violated a tax code provision or filed a late return.
Tax penalties are non tax deductible when you pay them.
1. Whenever the IRS find a business or its owner was late in filling a return.
2. if you or your business is hit with a penalty, it may be cancelled if you can show “reasonable cause”
3. You are entitled to a full explanation from the IRS of any penalty imposed and how it was added
4. It is more difficult, but not impossible, to get the IRS to drop the interest then the penalties on your tax bill
THREE COMMON REASONS FOR PENALTIES
1. INACCURRACIES: The IRS can hit you with a 20% penalty if you were negligent (unreasonable careless) or substantially understated your taxes.
2. CIVIL FRAUD: If the IRS finds that you under reported your income with a fraudulent intent, a fine of 75% can be added or your case could go criminal. If you have major skeletons in your closet, call us (800)790-8574 or text 657-777-2084 to schedule a phone appointment.
3. LATE FILING: If you’re late in filing income tax returns or other forms, the IRS can penalize you an additional 5% per month on any balance due. However, the penalty can be applied only for the first five months and up to a 25% maximum charge.
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Have tax problems? Call (800)790-8574
“My husband lost his job and the IRS was garnishing my wages. I called advance tax relief for help, my wage garnishment was released and we settled with the IRS for $1,200 on a $48k debt. Our family is very grateful” – Shirley W, Tampa FL