If a person doesn’t pay taxes in time, IRS officials have to get the money in time. They are well equipped and have the authority to deal with these matters. In this post, we will discuss how the IRS imposes penalties and what you can do if anything goes wrong.
Many of us don’t know about IRS tax rules properly. If you are one of them, you can consult with an experienced person (like a tax accountant lawyer). They are the right person to help you in these situations. We will focus on the solutions to get tax relief. Read the full write-up to know more about tax relief procedures.
Why Does The IRS Impose Penalties?
For those who don’t know how the IRS works, let me tell you, IRS is the responsible body that can collect taxes and have all the power to take further steps. One of the most popular steps they take is imposing penalties. You can look for a professional tax expert (including the best IRS lawyers) to know more about IRS dealings.
One of the important reasons behind imposing tax penalties is to spread awareness among people about tax payments. For that reason, although in the last few years, the number of tax audits has gone down, the number of taxpayers has gone up significantly. You should know along with imposing penalties, and the IRS also offers reductions and solutions for genuine taxpayers.
Common Penalties That Can Be Imposed Upon You
According to the IRS rulebook, the IRS can impose almost over a hundred penalties on a person or organization. Some of the most important and common penalties are:
- If you fail to pay the penalty, IRS can impose further penalties.
- When you fail to pay your taxes in time, you will be eligible to pay the penalty.
- Business organizations can get a penalty when they don’t pay taxes in time.
There are multiple others as well. Consult with your tax law expert to know more.
Reasons You Can Show To Get Scot Free
Suppose you have already got a notice about the imposed penalties on you; here are some relief options that one can avail of.
1. Statutory Reasons
When a person goes through a disaster, the IRS has provisions that can give him combat zone relief. Although this penalty relief is uncommon, it is present in the rulebook.
2. Error In Documentation
You can file a complaint if you think there is a probable error in documentation. It is common to do mistakes, especially for humans. Once a small mistake in documentation happens, the whole tax calculation changes. It can have a vast impact on the penalties as well. Consult with your tax professional if you think there has been a probable mistake in the documentation.
3. You Have Some Genuine Reasons
If there have been genuine reasons for your late tax payments, you can submit that to the IRS federal body. There are times when a person unwillingly makes mistakes. It is not his fault that it cost him tax penalties. After your submission, the IRS will look into the matter and decide what to do.
We have discussed all the possible factors around tax penalties and how you can get some relief. We hope this post will help you find your answers. To learn more about tax relief, make sure to consult with a tax law expert.