IRS Penalties & Interest
At 20/20 Tax Resolution, we are on your side, telling you what the IRS doesn't want you to know. A recent survey of tax professionals showed that most professionals consider penalties to be the fifth most serious problem faced by Americans. The Taxpayer Advocate's Annual Report to Congress consistently rates penalties as one of the most serious problems faced by taxpayers. Annually, the IRS issues over thirty million penalties against businesses and individuals, with revenue from these penalties often exceeding $15 billion.
Obviously, tax penalties and interest are a continual source of frustration for American taxpayers. The IRS won't tell you about the intricacies of tax law. That's why more people are coming to 20/20 Tax Resolution to learn about their options when faced with tax penalties and interest.
The IRS won't charge you penalties for filing late if you owe nothing, because penalties and interest are calculated on the amount due. However, if you have a balance due on a late tax return, the IRS will assess penalties and interest. There are three kinds of penalties you will likely be asked to pay:
Failure to File Penalty
This penalty is calculated based to the time from the deadline of your tax return to the date you filed you tax return.
Failure to Pay Penalty
This penalty is calculated based on the amount of tax you owe. There is no maximum limit to this penalty.
Interest
Interest is calculated based on how much tax you owe, with interest rates changing every three months. Interest is calculated by day until you balance is paid in full.
Interest on tax debt will often double your debt - or more. The IRS will tell you that interest is always added and cannot be canceled, however there are cases when this rule does not hold true. 20/20 Tax Resolution will always honestly explain your options. We're committed to your financial freedom and will help you get the best resolution allowed by law for your situation.
20/20 Tax Resolution is completely on your side - we understand the ins and outs of tax law and have spent 12 years dealing with the IRS. We have working relationships with IRS officers and will establish credibility on your behalf, representing your rights and negotiating tirelessly to reach a resolution.
