One way to make sure you minimize what you owe to the IRS is to keep tax penalties off your bill. But it’s hard to avoid penalties if you don’t know the various reasons that the tax authorities are allowed to assign you a penalty.
The following are all justifications for IRS tax penalties:
- Late filing
- Late payment
- Underpayment of estimated taxes
- Returned checks
- Missing SSN(s)
- Unreported tips
- Excessive claims
- Frivolous return filing
These penalties vary in size depending on their severity. While failure to report a SSN for yourself, a dependent, or other person clocks in at $50 per instance, the penalty for fraud is a steep 75% of the underpayment related to the fraud. Regardless of its size, a tax penalty is extra money you owe to the IRS, so it’s best to just avoid them entirely.
If you’ve found yourself facing a tax penalty, or you want professional guidance and tax preparation to keep from getting one in the first place, Taxation Solutions, Inc. is happy to help. We provide a full range of tax help services in St. Louis and beyond, and we’re here to assist local individuals, families, and businesses in protecting themselves from tax penalties. Contact us now to learn more!