Tax Penalties
IRS tax penalties have become a major source of federal funding. The United States government collects over six million dollars a year in IRS penalties. All of these penalties begin to accrue once the tax liability is due. The Internal Revenue Service continues to accrue penalties until the debt is paid in full. There are various types of penalties, but all result in one thing - less money for you. The most common penalties used by the IRS for various infractions are:
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| Infraction | Tax Penalty | |
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| Late Filing (If your IRS tax return is more than 60 days late, the minimum IRS tax penalty is the smaller of $100 or 100% of the tax owed.) |
5% per month of the net tax due the IRS (maximum 25%) | |
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| Late filing with the IRS due to fraud | 15% per month of the net tax due the IRS (maximum 75%) | |
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| Late tax payments to the IRS | 0.5% per month of the unpaid tax due the IRS (maximum 25%) (The 0.5% rate increases to 1% after the IRS issues an IRS tax notice of intent to levy) | |
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| Negligence or disregard of IRS tax rules and IRS tax regulations | 20% of tax underpayment due the IRS | |
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| Fraud | 75% of tax underpayment due the IRS | |
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| Substantial understatements of income tax (tax underpayments that exceed the greater of 10% of the correct tax liability or $5,000) |
20% of tax underpayment due the IRS | |
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| Over valuations of 200% or more but less than 400% of the correct amount | 20% of tax underpayment due the IRS | |
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| Over valuations of 400% or more of the correct amount | 40% of tax underpayment due the IRS | |
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| Estate tax and gift tax under valuations of 50% or more of the correct valuation and if the tax underpayment exceeds $5000 | 20% of tax underpayment due the IRS | |
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| Estate tax and gift tax under valuations of 75% or more of the correct valuation and if the tax underpayment exceeds $5000 | 40% of tax underpayment due the IRS | |
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Taxpayers can generally afford the average IRS penalties that are given to them. The problem is that most IRS penalties occur as a result of irresponsibility or lack of concern. The average IRS penalties do not lead to a civil fraud case or criminal prosecution. These two IRS problems occur if the IRS penalties are not taken care of.
The process of eliminating IRS penalties would be much simpler if you contact San Diego Tax Attorneys. We have years of experience dealing with the IRS on many issues, including reducing penalties. We know that a death or serious illness will work almost every time and that a poor excuse almost never gets the job done. There is no easy solution for dealing with IRS penalties, however, we can help validate your case.
San Diego Tax Attorneys will get your tax penalties waived!
Related content about tax penalties and tax abatement can also be viewed at tax related websites
