IRS Penalties If You Don't or Cannot Pay Taxes

Would you consider stealing to be under your moral code? While most people claim to have never stolen anything in their lives, some regretfully overlook the fact that not paying their taxes is indeed equivalent to intentionally stealing from the government. Well at least the IRS would have you believe. Some may argue this point, but what is important is what the consequences are if you do not pay your taxes. Even though there are a lot of taxpayers, the IRS will notice a delinquent taxpayer and harsh consequences will result from this.

The IRS reviews all transactions and if you have a missing tax return, you will hate to pay the price with fines and unpleasant interest charges. There are three specific penalties the IRS enforces when there is non-payment, late-payment or non-filling of your taxes.

Although the penalty for late filing is less than non-filling, you will still be charged with a 5% extra monthly payment. If you then do not pay this amount, the amount increases. To avoid this type of punishment, not only pay your taxes, but also file them as early as possible. The only time you can get an extension on payment is for special circumstances. You must document a special form, "Form 4868" to request an extension. If the IRS does not view your circumstance to be worthy of an extension, it could be very costly.

You must resolve 90% of owed taxes to the IRS before an extension request can be granted. If not, a 0.5% penalty is given out. In order to reduce the penalties, pay one part of the amount. If you do not submit any sum of money, your cost will surely rise and you will pay more. Failure to respond to payment can result in even worse situations such as you losing your home or even going to jail. If you have problems, do not delay action. Contact the IRS immediately in order to establish a personalized payment plan. Not filing, even if you do not have the money, will result t in harsher consequences, so make sure to file your returns. Use a tax professional to help you reconcile your debt for less money.

IRS Tax Penalties
Our firm can help prevent any negative consequences if you cannot pay your taxes or if you owe back taxes. Call us today toll free 1-800-717-2797 or visit our site for more self-help information.