The IRS takes the payment of taxes seriously. Besides, unpaid taxes is something you should avoid because they could be costly. That money could be invested in your retirement savings plan instead. So it is always best to put some money away in order to face unexpected expenses. Having a monthly budget and making savings automatically will help you reach your financial goals. Start doing it now and do not put it off.
According to the IRS, there are several reasons why you may have to pay a “ticket”. More often than not people delay their tax return filing and they end up doing it after the deadline. Thus, this may imply charges. Set an alarm in order not to forget about it. There are events that can make you completely forget about it. Other times, people prefer to hire a tax agent. You have to pay but you get rid of the burden.
Other times there is a combination of two different factors. You neither pay the taxes you owe the IRS punctually nor do it correctly. Thus, the Internal Revenue Service will charge you for that. If you are the sort of person who cannot understand the tax filing process, you may make some mistakes. Even though you might not have made them willingly, it was not filed accurately.
Can the IRS charge me for not providing information that is not correct or precise regarding my tax return?
It is one of the reasons why the IRS charges a penalty. Not giving them information accurately may imply having to pay a penalty. For instance, when taxpayers do not pay the money they owe fully, they will have to face the payment of interest. Every month you do not pay the exact amount of money, IRS will charge you extra for that time.
Some taxpayers may be unsure of the way the IRS tells them about a penalty charge. Therefore, if they impose a penalty you will get a letter or notice by mail. On it, you will have information regarding the amount of money you owe and why they gave you this penalty. They will also provide you with some information regarding the steps you need to take from then on. They contain an Identification number too.
Previously, you could see the main reasons why you may get a penalty. The IRS has a comprehensive list of all of the types. They first include Information Return, Failure to File, deposit or Pay, and Penalties related to Accuracy. After those cases which are the most common ones, you can find Erroneous Claim for Refund or Credit Penalty. Tax Preparer Penalties are also available together with Dishonored checks, underpayments, and Internation Information Reporting.