Failure to Pay

The Failure to Pay Penalty is calculated as follows if you fail to pay the tax due on your return:

• For each month or portion of a month that a tax remains unpaid, the Failure to Pay Penalty is 0.5 percent of the unpaid taxes. Your penalty won't exceed 25% of your unpaid taxes.

• The Failure to File Penalty will be reduced by the amount of the Failure to Pay Penalty that was applied in that month if both a Failure to Pay and a Failure to File Penalty are applied in the same month. We could, for instance, apply a 4.5% Failure to File Penalty and a 0.5 percent Failure to Pay Penalty instead of a 5% Failure to Pay.

• The Failure to Pay Penalty is reduced to 0.25 percent per month (or partial month) during your approved payment plan if you filed your individual tax return on time.

• The Failure to Pay Penalty is 1% per month or partial month if you do not pay your tax within ten days of receiving notice of our intent to levy.

• Even if you pay your tax in full before the end of the month, we still charge you the full monthly amount.

We calculate the Failure to Pay penalty in the following manner if you owe tax that you did not report on your return or pay on time:

• We will send you a notice or letter with the amount due and a due date to pay if we discover that you owe tax that you did not report on your return. The due date is usually 21 calendar days after we send the notice or if the tax amount you owe is $100,000 or more, the due date is typically 10 business days.

• The Failure to Pay Penalty is 0.5 percent of the tax you didn't pay on time for each month or part of a month you don't pay after the due date if you don't pay your taxes by the due date in the notice or letter we send you.

• The Failure to Pay Penalty is reduced to 0.25 percent per month (or partial month) if you are in an approved payment plan if you filed your individual tax return on time.

• The Failure to Pay Penalty is 1% per month or partial month if you do not pay your tax within ten days of receiving notice of our intent to levy.

• Even if you pay your tax in full before the end of the month, we still charge you the full monthly amount.

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.