By financen | July 15, 2014 - 4:58 pm - Posted in IRS, Tax

Great_Seal_of_the_United_States_(obverse)When an individual is not paying taxes in accordance with the IRS tax laws, they use a program called penalty program. IRS tax penalties are placed on your account since you have not complied as per the rules of the IRS tax laws. The penalties are imposed so that you do not miss paying your taxes on time, according to proper filing procedures, and payment arrangements made. You can avoid paying penalties if you are filing your taxes properly.

  • Tax penalties review

If you miss paying taxes, you will be charged penalty on your tax account for some of the following reasons.

  1. You pay a penalty when you do not file your tax return within the due date. This will include the extension period given to you for filing taxes. It is necessary that you comply with the IRS otherwise they will charge you failure-to-file penalty. It cannot be more than 25% of the amount of taxes that you owe.
  2. You are required to pay a penalty when you have missed paying the penalty on your tax return in the past. This penalty is usually within 25% of your unpaid tax. However, if you can provide a good reason regarding why you were not able to pay the tax on time, chances are that you do not have to pay this penalty.IRS tax penalties
  3. The frivolous return is when you have to pay a penalty because your tax return does not show enough information to figure the correct tax or a tax return. This penalty is usually in addition to any other penalty that might be assessed to your account.
  4. If someone is neglecting paying the tax return, they will have to pay such penalties.
  5. The IRS tax agent should receive correct information from you about your identity and other information related to your taxes. If you fail to do you, you will have to pay a penalty for it.

If you have missed filing your taxes without any proper reasons, you will have to pay a small penalty. The penalties may vary depending upon the charge and in some cases will result in imprisonment. Therefore its very important to file your taxes on time.

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