As soon as you miss an IRS deadline, you’ll likely find yourself facing some form of tax penalty. The government is intent on collecting what it is owed, and uses tax penalties to encourage prompt compliance. What you might not realize is how those IRS penalties differ, depending on the infraction. For instance:
- The penalty for failing to file your tax return on time is normally 5% of the unpaid taxes for each month or part of a month the return is late.
- The penalty for failing to pay what you owe on time and in full is 0.5% of your unpaid taxes for each month or part of a month past the due date.
Because the failure-to-file penalty is larger than the failure-to-pay penalty, it’s always a good idea to go ahead and submit your tax paperwork on time—even if you can’t currently afford to make a payment. Keep in mind that the sooner you can rectify your error or negligence, the better. Tax penalties can pile up as time goes on, and your total debt could eventually snowball out of your control.
Taxation Solutions, Inc. is your best bet for tax resolution services in Orlando. We can help you resolve the tax penalty that’s causing you trouble, presenting reasons why you shouldn’t be penalized or negotiating tax settlements to help you pay what you owe. Give us a call now to book your appointment!