It is a well-known fact that the IRS assesses penalties, and those penalties SUCK! They increase the amount you, end up owing the IRS A LOT more than you started with and they make us mad!
Regardless of all this, there are good reasons for the IRS assessing penalties:
- Encourages taxpayers to file their tax returns on time and pay any tax owed
- Help cover the costs associated with collecting back taxes
- Ensures consistent and fair treatment of the issues
- Ensures noncompliant behavior is penalized
It is always good practice to file your returns, even if you can't pay the full amount owed to avoid the failure-to-file penalty. If you can, pay the full amount owed when you file your taxes to avoid the failure-to-pay penalty.
The focus of our practice is helping individuals and businesses resolve their IRS tax problems in the Las Vegas, Nevada, St. George, Utah areas, and elsewhere. If you or someone you know is dealing with IRS problems, contact me at 702-469-9426 or candy@numbercruncherllc.tax.
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