The (not so) Skinny on IRS Penalties and Interest

Have you ever stopped to think about the nature of IRS penalties and interest?  Essentially, this is a tax on tax.  You get taxed, and then you are taxed again in the form of a penalty for doing (or not doing) something properly in relation to the underlying tax.  Then, like any lender, the IRS compounds interest on the penalty and underlying tax until it is paid or otherwise forgiven.

Here are the events that will cause you a tax penalties:

Under estimate and late payment penalties;

Late income tax return penalties;

Accuracy related penalties;

Late information return penalties;

100% penalties on unpaid withholding taxes (payroll);

Penalties for failure to provide foreign information;

Excise taxes with the effect of penalties;

Tax fraud penalties;

Tax adviser penalties...

Have I missed any?  Let me know if I have.  We have become a culture of taxed people, and we accept this from the IRS as business as usual.  What many don't realize is just how easy it is to get penalties (and the interest associated with those penalties) abated, i.e. forgiven, in many circumstances.  Nearly half of all penalty abatement requests are granted.  Watch my video on this page to learn more.  Break free from crushing IRS penalties today by calling Oklahoma lawyer, Travis Watkins, today at 405-607-1192. 

Travis Watkins
Senior Tax Attorney
Be the first to comment!
Post a Comment