Tax season is just around the corner for everyone in Washington and around the country. The filing deadline is typically in mid-April, but many individuals try to complete their taxes long before then. It is important to set up a payment plan, pay your taxes or file your taxes before this deadline. If you do not take these above steps, you run the risk of penalties from the IRS and the federal government.
Failure to file
The first tax issue that you may encounter if you do not file your taxes by the deadline is a failure-to-file penalty. For every month that your taxes are late, you will face a 5% late fee on your taxes. This number does only go to 25%, so you have five months after the deadline. If your taxes are more than two months late, you do have to pay either $135 or 100% of your taxes upfront depending on the greater amount.
Failure to pay
The second tax law you may encounter is a failure-to-pay penalty if you file your taxes but do not pay them as you should. You will face a 0.5% charge every month that your payment is late, going up to 25%. An interest rate goes on your taxes as well, which is the same as the federal short-term interest with an additional 3%.
Do not ignore your taxes for an extended period of time. If you do, the IRS has even more penalties it could offer you. These include:
- The seizing of your properties
- A forfeited refund
- A revocation of your passport
- Legal charges for tax evasion
Assistance with tax issues
If you need assistance in understanding any of these tax laws above, you may want to contact an experienced lawyer. It is important to understand your rights as a citizen, especially if you have a charge for tax evasion. A lawyer may hear your concerns and assist you in the defense of your rights under these penalties.