Potential IRS Penalties for Tax Non-Payment
Federal law and IRS regulations state that if you don’t file your tax returns or pay your taxes in a timely fashion, the IRS will charge you pretty significant penalties. A penalty will apply for each month of 0.5 percent for the first month and each additional month or partial month that the tax remains owing, subject to an aggregate maximum of 25 percent of the taxes owing. The IRS applies the penalty to the net amount due, so any amount paid will reduce the overall debt. If you miss certain deadlines in making your payments, the IRS can increase the monthly penalty to 1 percent of the total owing. The penalties in the case of a fraudulent failure to file triple the penalty payments and aggregate maximum. You can…