How to Abate IRS Penalty and Interest?

To make sure that no one is able to receive a larger tax return than they should, the US government makes it a point to carefully reviews every tax filing that is received to them. Taxpayer tax avoidance costs the federal government more than $458 billion annually. If the government intends to guarantee that someone cannot escape paying taxes, it must properly review all tax information. After all, the government does everything it can to make sure it loses as little tax money as possible. There are instances when the IRS will review a tax filing and discover an error. If something is incorrect, the IRS may impose a penalty and it will be added to your total tax due. That is why it is important to be truthful when filing your tax.  To help everyone better understand what to do if they get a penalty after completing their taxes, scroll over here.

Assessing tax penalties

Penalties are frequently imposed on taxpayers long after they have filed their taxes. The penalties are frequently for the following reasons:

  • Reporting their taxes late
  • Paying the taxes they owe later than they are required to pay them
  • False claim when filing taxes

Generally, tax returns must be filed by April 15th of every year. Someone must petition for an extension if they are aware that they will be unable to file their taxes by the deadline owing to a lack of supporting evidence or extremely complex filing requirements. The extension may help the taxpayer to buy the time they require to compile all of their supporting papers and file everything meticulously to ensure there will be no mistakes when the IRS examines their application. To be taken into account by the IRS, the extension must be submitted by the deadline for filing taxes.

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