This is a question very few people legitimately ask. Why? Well, the IRS has sort of made a name for themselves over the years. All you have to do is say “IRS” in a crowded business room and you’ll hear hissing. Regardless, everyone knows to not mess with the IRS. But really…for those curious (or dangerous) souls out there, here is a little insight.
Fines
It should come as no surprise that if you don’t pay, you will be fined. Fines will be heavier if you haven’t filed or paid, and a little less severe if you have filed but haven’t paid yet. The IRS does appreciate effort. Failure to file will come at 5% interest on what you owe and tops off at 25%. If you filed for an extension, the interest rates will be much lower (.25%) but it’s still an unnecessary fee. So file.
Underpayment
You may also run into trouble if you underpay. Criminal fraud can cost you heavy court determined fines and jail time. There are also penalties for civil fraud, negligence, and frivolous return. You can pay in increments if you can’t pay your taxes all at once, but there will be slight interest rate fee.
Tax Crisis Institute can help you if you find yourself slipping into any of the above situations. We can help you organize, file, appeal, or handle your tax problems in any way. Contact us for a free consultation and see how they can help you!