Penalty Relief Available for People That Pay the IRS Late

Late Taxes Penalty Relief for Taxpayers who File for Extension

157195385With the tax deadline just around the corner, the IRS has actually provided a form of late taxes penalty relief for taxpayers who file for an extension. The relief applies to the late-payment penalty, which is normally 0.5 percent per month plus interest charged on tax payments made after the regular filing deadline, which is April 15. The late taxes payment penalty will be waived for those taxpayers whose tax returns included any of the 31 forms that were not released by the IRS until February or March. Here’s some guidance from our Michigan tax lawyer, Venar R. Ayar on late taxes penalty relief.

Who Does the Late Tax Penalty Relief Apply To?

Late taxes penalty relief applies to late form filers. The extension relief applies to any of the forms, which are delayed until February or March, primarily due to the enactment of the American Taxpayer Relief Act in January. The act explains that representatives of Congress pretty much placed roadblocks in this year’s filing season system. All of the people who have been delayed must now file for an extension, which the IRS is going to make up for, by supplying late tax penalty relief.

Individuals and businesses qualify for this late tax penalty relief if they request an extension to file their 2012 returns. The tax agency has announced that they will not penalize some of the taxpayers who file for a tax extension, but who don’t pay a sufficient amount of their due tax when they submit the request through Form 4868. If the proper forms you needed to file were not available to you, the late tax penalty relief will be automatically granted to you.

Keep in mind, that the tax extension relief to file is six extra months to get the tax forms in—not six extra months to pay any taxes you owe. You should estimate how much in taxes you will owe, and send payment to the IRS with the extension form. Interest will still apply to any tax payment made after the original deadline.

If You Receive A Late Tax Penalty Notice

If you do not send enough money with Form 4868, you will receive a late tax penalty notice. Although your tax penalty will be erased, you still have to tell the IRS to do so. In responding to the notice, send the IRS a letter describing your eligibility for the late taxes penalty relief. Include which of the qualifying forms were part of your 2012 tax return.

A skilled attorney would be beneficial in order to guide you through this process, so that you know the appropriate steps to take next. If you apply for late tax penalty relief or have received a penalty notice, and want to talk more about it, feel free to give Ayar Law Group a call, or send us e-mail here. [author] [author_image timthumb=’off’][/author_image] [author_info]Michigan tax lawyer, Venar R. Ayar, founder of Ayar Law Group, holds ten years of experience as an accounting specialist and tax lawyer. He earned his Juris Doctor at the University of San Diego School of Law, receiving a Master of Laws in Taxation—the highest degree available in tax. His main focus has become Michigan tax resolution as well as IRS tax resolution, including individual and business tax matters; tax planning, tax compliance and white-collar criminal defense. His business background has helped him to become personable and understanding in his work. Representing clients before the IRS, Ayar’s practice and experience has proved him as an honest and dedicated leader in the realm of Michigan tax lawyers. Click here to contact your Michigan tax lawyer, Venar Ayar. [/author_info] [/author]

Venar Ayar, Esq.

Venar Ayar, Esq.

Attorney-at-Law, Master of Laws in Taxation
Principal and founder, Ayar Law

Venar is an award-winning tax attorney ranked as a Top Lawyer in the field of Tax Law. Mr. Ayar has a Master of Laws in Taxation – the highest degree available in tax, held by only a small number of the country’s attorneys.