At any point in time, millions of Americans are facing IRS late filing penalties and interest charges. Unfortunately, it is a common occurrence, especially considering the current state of the economy. But before you settle up with the IRS, make sure that you understand your rights.
IRS tax penalties and interest charges can cause emotional distress and financial hardship. But make sure that before you attempt to tackle the issue, you understand exactly why these penalties were imposed and what your legal options are to get them removed or settled.
The IRS charges penalties for a variety of tax related issues, the most pervasive of which is for failing to submit payment or file a tax return by the appropriate due date. While these charges are constructed to ensure proper and prompt payment and submission of documentation, they can add a substantial amount of debt onto the taxpayer’s initial liability, oftentimes up to 50%.