How to Limit Your Tax Penalties for Failure to File

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Are you behind in filing your tax return? If you have not filed a tax return for one or more years, you could be facing some steep penalties and interest on your past due tax returns and payments. Penalties for failure to file and interest on back taxes can quickly becoming a large financial burden. Consider this information from our IRS tax specialists at Brager Tax Law Group to limit your penalties for failure to file and reduce your debt to the IRS.

IRS Tax Penalty for Failure to File

First of all, if you do not owe taxes, failing to file by the deadline is not penalized by the IRS. It is only when you owe taxes and do not file a return by the deadline that you can be penalized. The standard IRS penalty for failure to file is charged at the rate of 5% per month up to 25%. However, if fraud is involved, the penalty can be significantly higher at 15% per month up to 75% of the taxes owed.

Keep in mind that if you have not paid your taxes by the tax deadline, usually April 15th, you will also be facing interest charges on top on the penalties for failure to file. There is also a separate penalty for failure to pay the taxes when due. When combined, these extra costs can be quite burdensome, and should be avoided if possible.

Reducing IRS Tax Penalties

If you have not filed a tax return in one or more years, you are facing IRS tax penalties for every year you did not file. Not only will penalties for failure to file be added for each tax year, interest is added to any tax debt owed. However, with the help of a IRS tax attorney, you may be able to reduce the amount of penalties you must pay.

The IRS will forgive or remove tax penalties for failure to file if there is reasonable cause for why the tax return was filed late. With the help of an expert IRS tax lawyer, you may be able to reduce the penalties on your tax debt, or even have them completely removed. Contacting a tax attorney as soon as possible to determine the best way to proceed when you owe the IRS back taxes that you cannot pay is the best way to avoid excessive penalties and possible other consequences such as bank account seizures, wage garnishments and other property levies.

At Brager Tax Law Group, we are experienced in handling all aspects of tax problems and finding resolutions for our clients. If you are behind in filing your tax return, contact us to find out the best way to reduce your tax penalties for failure to file and interest on your owed taxes. Call Brager Tax Law Group to set up an appointment at our Los Angeles office at 310.208.6200.

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