What are Penalties for Unpaid Taxes Owed to the IRS? NYC Tax Resolution Attorney Explains

There are Penalties for Unpaid Taxes Owed to the IRS: New York City Tax Resolution Attorney Explains What They Are

If it is not bad enough to be surprised at tax time that you owe the IRS money, sometimes even significant money over $50,000, it is even worse to find out that the IRS will impose certain penalties on your tax debt if you do not pay right away.  This can turn a difficult tax debt into an overwhelming one debt really quickly.  There are some common tax penalties that the IRS will impose which can quickly add thousands of dollars to your owed taxes.  Sometimes these tax penalties are calculated improperly which can also further bury you in improper tax liabilities.

But there are some solutions how to avoid, mitigate, or even wipe your tax penalties if you speak with a New York City tax resolution attorney.  In some instances you can contest the penalty as improper, whereas in other instances you may be able to get the tax penalty negotiated down or completely removed.  If you owe the IRS money and the IRS has imposed a tax penalty on you, call SAMUEL & STEIN to learn what your options are to fight back at the IRS and resolve tax penalties in your favor.

What are some Common IRS Tax Penalties?

Tax penalties seem like insult to the injury of a tax liability.  The continue to accrue from the day after tax day until they are paid off in full.  They can quickly add thousands of dollars to tax liabilities of even just $25,000 or more.  Some penalties are charged on a monthly basis, while other penalties are paid per annum.

The most common tax penalties include the following:

Failure to file taxes – this is a penalty issued when you fail to file your tax return by the due date of April 15 or pursuant to an extension if you requested and were approved for it.  This is a bad penalty to receive because it can be completely avoided by timely filing or requesting extensions.  Even if you owe significant money in back taxes, it is a bad idea to not file your taxes because 1) this penalty for not filing is hirer than the “failure to pay” penalty, and 2) the IRS will discover what you owe anyway and backdate it to April 15.

Failure to pay – this penalty is when you don’t pay the taxes reported on your turn in full by the due date of April 15.  The tricky point here is that an extension to file only extends your time to file your tax return and not to pay your taxes.  Thus, even if you get an extension you will need to pay an estimated amount to avoid this penalty.

Dishonored/returned check – if you pay but your bank does not honor your check or other form of payment, the IRS will assess this type of penalty on you.  For checks of $1,250 or more, the penalty is 2% of the amount of the payment that was rejected.  For checks less than $1,250, the penalty is the amount of the payment or $25, whichever is less.

Were You Assessed a Penalty that You Believe was Unfair?  You May Have Options!  Call the New York City Tax Resolution Attorneys at SAMUEL & STEIN to Learn More

There is a lot that goes into tax resolution and it can be a complicated maze with many pitfalls.  Call our experienced attorneys at Samuel & Stein today to learn how we can help you successfully navigate this matrix of tax laws and achieve financial freedom by dialing (646) 480-2149 or use the convenient “Evaluate Now” box on our webpage.  Together we can help answer your questions and protect your rights.

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