Many people have heard about IRS tax penalties and interest. However, few people today truly understand exactly what this implies. While each tax case is unique and different, there are also a number of various solutions that can be applied to deal with IRS tax penalties and interest. Working with an experienced Atlanta tax lawyer is typically the first place to begin when dealing with any type of IRS penalty. Here are some of the more common types of IRS penalties that today’s modern taxpayer may face.
Tax Return Is Completely Accurate
One common type of penalty addresses something known as accuracy related issues. Under existing laws, the IRS is able to impose penalties on taxpayers as it relates to disregard and negligence regarding IRS rules and regulations. Those who understate or underestimate the amount of tax they owe or overstate tax benefits can be subject to this type of penalty. Always ensure that your tax return is completely accurate in every way. If you are ever in doubt always seek out professional help from a CPA or Atlanta tax attorney.
Failure To Pay
In addition, there are penalties associated with failure to file a return in a timely way. The IRS imposes a penalty on taxpayers who fail to file a tax return before the stated due date which is usually April 15. The amount of the penalty varies depending on each unique case or situation. Another penalty that is often seen when dealing with the IRS is that of a penalty for failure to pay in a timely way. As with failing to file in a timely way, failing to pay in a timely way can result in considerable financial penalties.
Trust Fund Recovery
Always pay anything due to the IRS on or before the accepted due date. Taxpayers can also be assessed a failure to pay penalty if it is determined that they owe more taxes than were actually calculated on the current return. It is good to note that there are options for those who owe the IRS money. Consulting with an IRS tax attorney in Atlanta should be the first step in keeping your tax situation under control as opposed to avoiding filing. In other instances a penalty can be imposed with regard to a trust fund recovery. This type of penalty is associated with a taxpayer who is required to report, account, collect or deposit quarterly employment taxes for a specific business.
Taxpayers failing to satisfy the trust fund recovery requirements will likely see the IRS impose some type of penalty. Finally, something known as a civil fraud related penalty also exists. This type of penalty can be as much as 75% of the actual tax liability. Also added by the IRS is any interest that is due. This type of penalty is substantial because in many cases it can actually exceed the original tax liability owed by the taxpayer. Contact The Gartzman Law Firm, P.C. today for IRS tax help in Atlanta.