Unpaid Tax Penalties

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The deadline for most people to file their tax return and pay any money that is due is April 15. If you decide to let this day come and go without paying, you are going to accumulate penalties on your account. Unpaid tax penalties are more common than most people believe.

Unpaid tax penalties begin to accumulate the day after your return was due Ė which is usually April 15th. This penalty is 50 percent of the tax owed per month. As you can see, the longer you avoid paying your taxes the more penalties you are going to receive. So even if you are late, it would be in your best interest to hurry up to keep the amount of penalties to a minimum. The maximum allowable penalty is 25 percent of the amount owed.

There are many other consequences of unpaid taxes. For instance, you will begin to receive CP Letters in the mail. These letters are sent to demand payment. If you ignore them the IRS will continue to send more. Of course, they eventually get to the point where they are going to start collecting.

If you continue to press your luck, the IRS may send you a Notice of Federal Tax Lien. Along with this, a tax levy is usually the last step in the process. This is when the IRS comes and takes what is theirs. This includes wage garnishment, asset seizure, and bank levy.

It is important to know that the IRS offers many ways for you to pay taxes. In other words, if you donít have the money to pay in full you should not begin to panic. Instead, you can opt for another payment option, such as an installment agreement.

To learn more about unpaid tax penalties and decide what to do next, hire a tax professional. By doing this you will be able to avoid more problems, and maybe even have your past penalties wiped out.

There is a lot to know about unpaid tax penalties, and the above should give you a better idea of what the IRS can and will do.

If you are unable to pay taxes, find guidance and help at TaxDebtHelp.com.

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