Types of IRS Penalties

The Internal Revenue Code imposes many other types of IRS penalties, ranging from civil fines to imprisonment for criminal tax evasion.

If you do not file your return and pay your tax by the due date, you may have to pay a penalty.  You may also have to pay a penalty if you substantially understate your tax, understate a reportable transaction, file an erroneous claim for refund or credit, or file a frivolous tax submission.  If you provide fraudulent information on your return, you may have to pay a civil fraud penalty.

Penalties are generally payable upon notice and demand. Penalties are generally assessed, collected and paid in the same manner as taxes.

There are a multitude of penalties the IRS can assess.  The more common penalties are:

  • Estimated tax penalty
  • Failure to file penalty
  • Failure to pay penalty
  • Accuracy related penalty
  • Substantial underpayment penalty
  • Negligence
  • Civil Fraud
  • Frivolous tax
  • Bounced checks

The IRS collects billions of dollars in the assessment of penalties and interest.  The penalties are unforgiving and extremely harsh!

How We Can Help You

Call us today for help to solve your IRS penalty problems.  We can help you to determine what your penalties may be and provide knowledgeable, professional assistance in helping you to reduce your taxes owed, penalties and interest.