Platinum Tax Defenders Offers Tips On How To Avoid Tax Penalties
- August 11, 2019
- Posted by: Platinum Tax defenders
- Category: Tax Relief
Platinum Tax Defenders helps thousands of taxpayers each year suffering from increasing IRS debt due to tax penalties. Tax season can be hard enough without worrying about the IRS penalties you will incur. The IRS doesn’t assess penalties on taxpayer’s tax obligations randomly. If taxpayers violate current IRS codes, they could be at risk for penalties. When the IRS adds on penalties to your existing back taxes, it makes your debt rose. You can protect yourself against penalties by understanding what they are. Also, it’s essential to know when the IRS will levy penalties against your tax obligation. Keep reading as Platinum Tax Defenders uncovers how you can avoid expensive tax penalties this tax season.
When does the IRS issue tax penalties?
Several situations exist in which the IRS can add penalties to what you owe. First, you could receive penalties if you owe past due taxes. When you maintain a balance from previous tax seasons and don’t pay it, the IRS charges penalties. You will incur penalties for every year you fail to pay off the balance.
Additionally, the IRS will penalize you if you fail to file your taxes at all. When you don’t file or pay what you owe, the IRS will add penalties to your balance. You will have to pay penalties in addition to your balance. If the IRS owes you a refund, they may take the penalties out of that refund. In turn, the amount you receive in a refund will be lower.
You can also incur penalties if you don’t make enough payments to cover your liability for that tax year. Penalties will increase the amount of money you owe. If you incur penalties, it may make it harder for you to pay off tax debt to the IRS. Do you owe the IRS in back taxes and are worrying about tax penalties? Call Platinum Tax Defenders today for a free consultation.
Platinum Tax Defenders Answers: What Are The Most Common Tax Penalties?
There are three common penalties that the IRS levies against taxpayers. The first IRS penalty is a failure-to-file penalty, which is one of the most damaging that taxpayers can incur.
If you owe a balance to the IRS and fail to file and submit, you will receive this penalty. You will incur a penalty of five percent of the balance for each month you don’t pay. The IRS caps the penalty at 25 percent.
What if you fail to pay your balance?
The IRS will also penalize you if you fail to pay your balance. When you don’t pay what you owe the IRS, you will be subject to a late payment penalty. The penalty will equal 0.5 percent of the balance for every month the balance is late. The IRS will compound the interest daily onto the total balance you owe.
Another standard penalty is for underpaying the estimated tax you owe. The underpayment penalty ranges from 0.0008 to 2.3 percent of your back tax total. Additionally, the IRS tends to be flexible about how and when it assesses this penalty. It’s possible to avoid this penalty. However, you may be able to avoid the penalty by being upfront with the IRS about why you underpaid.
Platinum Tax Defenders Shares Tips On How To Avoid Tax Penalties
It’s possible to avoid incurring IRS penalties by following tax codes for filing and paying taxes each year. You must file on time, pay what you owe, and take extra care when filing your return. If you file on time, you can avoid making mistakes on your return. Additionally, you can avoid paying additional penalties on top of what you owe the IRS.
File by the tax deadline to avoid penalties
The best way to avoid IRS penalties is to file your return and pay what you owe by the deadline. If you don’t submit your return by the deadline, you will incur a penalty of five percent for each month. If you need help with filing taxes, call the experts at Platinum Tax Defenders.
File a tax extension to avoid penalties
It’s also possible to avoid penalties by asking the IRS for an extension to file and pay taxes. There may be several reasons why you need a tax filing extension. Some of the most common reasons for filing a tax extension include:
– You need more time to gather income statements
– There are mistakes on your income earning statements
– You’re suffering from a severe illness or injury
– If you’re away from home and not able to file taxes by the deadline
To request a tax return extension, you need to fill out and submit IRS Form 4868. You must still pay your tax debt for that year even if you receive an extension. To pay off your tax debt, you will need to arrange a plan with the IRS. A tax resolution professional can help you set up a monthly payment schedule with the IRS.
Get help from a tax relief professional at Platinum Tax Defenders
If you aren’t sure how to avoid IRS tax penalties, consult a tax professional at Platinum Tax Defenders when filing. The Platinum Tax Defenders team can help if your return is too complicated to submit on your own. Tax resolution experts at Platinum Tax Defenders can also make sure you don’t underestimate your income or overestimate your expenses. Overestimating or minimizing your income or expenses may result in a 20 percent penalty from the IRS.
Additionally, a CPA or tax specialist can represent you and help you if you come under an audit. Tax professionals are trained to deal with complicated tax issues such as owing back taxes. The IRS can assess penalties if you don’t file or pay your taxes on time. Avoid penalties by hiring a tax relief professional at Platinum Tax Defenders to assist you.
Get a free consultation by calling Platinum Tax Defenders Today
Hiring a tax relief specialist can get you a better deal when attempting to pay off back taxes. A tax attorney can help you determine which repayment method is right for you. The tax resolution specialist can also negotiate with the IRS on your behalf and submit the necessary paperwork. Owing back tax debt can leave you in bad financial shape. The IRS only wants to get what money you owe them in back taxes. Often, they are willing to help you settle back taxes, but you have to know how to try. That’s where a tax relief services company can come in handy. When you hire a tax resolution professional, there are other methods you can use to avoid expensive back tax debt. Call Platinum Tax Defenders for a free consultation today.