Tax Penalties
- Tax Problem
- Tax Penalties
Tax Penalties: Federal and State
Late tax return filing or late payment can trigger an assessment of tax penalties. Finding out you’ve been assessed federal or state tax penalties can be an upsetting experience. You might have seen this coming, or a letter in the mail might have shown up seemingly from nowhere.
Prompt action is required to stop the penalties from adding up and to restore your peace of mind. The tax resolution professionals at OnGuard Tax can help.
What are Federal and State Tax Penalties
Tax penalties are charges applied to an unpaid tax balance. These charges vary in amount and severity, and they almost always happen as a result of one or more of the following conditions:
– Failure to file taxes when required
– Filing taxes improperly or inaccurately
– Not fully paying owed taxes
Once a tax penalty has been assessed, it remains until it has been paid in full, is abated, is successfully appealed, or the collection statute has expired. In some cases, a tax penalty can be reversed if it can be proven that an error was made by the IRS or state taxing authority.
Tax Penalty Information
Tax penalties do not generally go away on their own. When the IRS or state assesses a penalty, they send a formal letter giving the taxpayer notice of the penalty and why it was assessed.
It’s important to note that tax penalties accrue interest if they’re not paid immediately. Given enough time, an assessed penalty can double in size due to accumulated interest.
This is why it’s so important to address tax penalty issues immediately. OnGuard Tax can help by providing expert assistance and representation before the IRS or state taxing authorities.
Preventing or Fixing Tax Penalties
Preventing tax penalties is actually quite simple: just pay your taxes accurately and on time. If the assessed penalty is related to an honest mistake you made when filing your taxes, the IRS or state might consider removing or reducing the penalty; every case is different.
Regardless of how severe your tax penalty problem is, you owe it to yourself to contact OnGuard Tax for expert help in resolving your situation and restoring your peace of mind.
Call us today for a free consultation and to get more information about federal and state tax problems and tax relief.