[youtube_video] MfFlXn33UwY [/youtube_video]
Many taxpayers understand that if they don’t pay their taxes on time, they will pay a penalty. But there are a few details worth knowing for a taxpayer that suspects they may not be able to pay their taxes on time.
IRS Failure To Pay Tax Penalties
The IRS provides information about Failure To Pay IRS tax penalties on their website. Below are some important points a taxpayer should know.
1.) Failure To Pay is not the only penalty a taxpayer is facing if they do not file their taxes on time. A higher tax penalty is assessed for not filing on time as well. The penalty for filing late is usually 5% of the back tax balance each month that it is not paid but will not exceed 25%. So if you file your returns in June, you will be assessed a Failure To File penalty of 10% of the back tax balance. (If you fail to file your taxes for more than 60 days, the minimum penalty is $135 or all of the tax fee, whichever is less.)The bottom line here is that it’s important, even though a taxpayer suspects they may not be able to pay their taxes due by the deadline, that they at least file the returns.
2.) Regardless of whether or not you file your returns on time, the back tax must be paid on time or the taxpayer will be faced with a Failure To Pay penalty. This penalty is equal to half of 1% of your unpaid taxes each month after the due date that the taxes are not paid. The penalty will not exceed 25%. This is applicable even if an extension was filed unless the taxpayer paid at least 90% of the final tax liability by the original due date and the balance (if any) is paid by the extended due date.
3.) If both penalties apply in any given month (the Failure To File penalty and the Failure To Pay penalty), the 5% Failure To File penalty will be reduced by whatever the penalty is for Failure To Pay unless you file your return more than 60 days after the original due date or the extended due date in which case the minimum penalty will be $135 or 100% of the unpaid tax (whichever is the smaller amount.)
4.) If you are able to show reasonable cause as to why you were unable to file your tax return or pay your taxes, you will not be assessed any penalties. Examples of reasonable cause would be hospitalization of the taxpayer on the deadline, recently deceased spouse during the time of the deadline or a disability which physically kept the taxpayer from going through the necessary actions to file the return.
NEED ADVICE?
There is a lot of information to process above and you still may have questions. That’s understandable. IRS Tax Relief Now is here to help. Give us a call any time. We are available 24 hours a day, seven days a week and we’ll be happy to hear about your tax issue in detail in order to provide you with a free evaluation of your tax issue and your possible options. Our friendly tax advisors have decades of experience and will be able to help you quickly and accurately the first time.
Still not sure? We encourage you to research our reputation for yourself: You’ll find that we’ve never had a complaint and we maintain a perfect rating at the Better Business Bureau.
With a free evaluation available to you at any time, experienced and friendly tax professionals with a great reputation, you have nothing to lose by simply giving us a call. There’s never any obligation to hire our firm and the consultation is confidential. We are ready and waiting to hear from you. Contact us today and sleep better tonight!
