Articles Tagged with tax penalties

The Most Common Criminal Tax Violations
The IRS reported 2,672 convictions for criminal tax violations in the 2016 fiscal year. While criminal tax charges are not common, the penalties —which can include jail time — are severe enough to cause any taxpayer to be concerned.

Most criminal tax penalties can result in a five-year prison sentence and $100,000 fine. You can also be charged with civil penalties for the same violations, and you may have any professional licenses revoked.

Common Criminal Tax Violations

Can You Request the IRS Waive Penalties Based on Medical Hardship
The IRS may offer penalty relief for taxpayers who can show a reasonable cause for failing to file tax returns or pay taxes. IRS penalties can be waived in certain cases, but the IRS will examine all of the facts and circumstances to determine if a reasonable cause exists in your particular case.

A typical situation that the IRS will consider a sound reason for failing to file or pay taxes is death, serious illness, incapacitation, or unavoidable absence of the taxpayer or a member of the taxpayer’s immediate family. If you owe a substantial amount of IRS penalties, you may want to consult with a tax attorney.

Facts Need to Establish Reasonable Cause Due to Medical Hardship

Can an Employee Be Held Liable for Their Employer's Unpaid Taxes
An employee can be held liable for their employer’s unpaid taxes in certain situations. While most businesses withhold their employees’ income and payroll taxes and then transmit them to the IRS, there are cases where employers either do not withhold taxes or do not give the withheld money to the IRS. Employees need to be aware of their responsibilities as both taxpayers and a person responsible for collecting and paying a business’s income or payroll taxes.

Liability for Employee’s Unpaid Taxes

If your employer fails to withhold income or payroll taxes from your paycheck, you are still responsible for paying these taxes to the IRS. If you do not pay these taxes personally, you may face tax penalties, and you may not be eligible for Social Security, Medicare, or unemployment benefits.

What Are the Penalties for Failing to File IRS Tax Returns
Timely filing of IRS tax returns is always preferable to missing deadlines and facing tax return penalties for doing so. Failing to file tax returns leaves you liable for some potentially expensive penalties. Depending on how late, the amount of taxes involved and how many years of returns are delinquent, the consequences can be quite severe.

Here is a look at the penalties for failing to file tax returns:

  • Failure-to-file penalties begin after the April 15 deadline and accrue at a rate of 5% of the amount owed, per month or part of a month up to a maximum of 25%.


When faced with tax problems, managing the debt without destroying your budget can be daunting. Depending on how much you owe, it could take years to get out from under the financial burden. The longer it takes, the more penalties you face, including interest and potential tax liens or levied assets.

Fortunately, the IRS offers several programs to ease that burden and in some cases reduce the total amount you will need to repay. These programs have been augmented to provide greater tax relief as part of an IRS policy change known as the Fresh Start Program.

Offers in Compromise (OIC) 

Can I Go to Jail for Failure to File Tax Returns
Failure to file tax returns can be classified as tax fraud by the IRS. While that term does manage to make it sound much more serious, failure to file by itself doesn’t often result in jail time.  Still it’s not impossible—just ask Wesley Snipes! Usually though, the government wants taxpayers earning money so it can collect those taxes. Sending non-payers to prison isn’t going to facilitate that.

The federal or California state government would have to be convinced that your failure to file taxes was intentional before considering something as severe as a jail term. Failure to file over many years, coupled with other bad conduct such as hiding assets, for example, could be subject to criminal penalties including imprisonment and/or fines. In lesser cases, you are more likely going to be liable for back taxes and civil penalties, plus interest.

Failure to File Tax Returns and Failure to Pay

Can Back Taxes and Penalties Be Negotiated
Back taxes can be financially crippling both to you and your business. If your tax debt is more than you can afford to pay back in a lump sum, or if you think there may be some error on the part of the government in assessing how much you owe, you do have some options at your disposal.

Offer in Compromise to Reduce Back Taxes

One such option is known as the Offer in Compromise, which is an application to reduce your tax liability to less than the full amount you owe, under certain circumstances. Acceptance of an OIC is at the discretion of the IRS and is based on a combination of factors including your ability to pay, income, assets and total expenses. To be eligible to submit an Offer in Compromise, you must be current on all your tax filings and not be in a bankruptcy proceeding.

Taxes Concept on File Label in Multicolor Card Index. Closeup View. Selective Focus.

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.