A failure to file FBARs and Form 8938 can result in numerous civil tax penalties. Criminal penalties are also a possibility, which could result in jail time.
If you’re having tax problems
Tag: tax penalties
You may be able to get IRS tax penalty relief simply by asking for it. If you meet the criteria for first-time penalty abatement (FTA), reasonable cause penalty relief, or other types of penalty relief, you will need to submit a request to the IRS in order to have your penalties reduced.
The IRS can assess several different types of penalties for tax fraud, including the following: Civil tax fraud penalty Fraudulent failure to file penalty Criminal penalty for filing a fraudulent return Criminal tax evasion Willful failure to pay estimated taxes Trust fund recovery penalty Penalty for willful failure to file Foreign Bank Account Reports (FBARs)… Read more »
What is a Tax Penalty Abatement? Taxpayers with unfiled tax returns or unpaid taxes are often hit with the following IRS penalties: The failure-to-file penalty, which accrues at 5% of your unpaid taxes per month The failure-to-pay penalty, which accrues at 0.5% of your unpaid taxes per month In addition, you’ll be charged interest… Read more »
Reasons for Requesting an Extension There are two major reasons taxpayers request a six-month extension to file their tax returns: • They waited until the last minute, and now they don’t have enough time to file their return. • They can’t afford to pay their tax bill. While the IRS will give all taxpayers an… Read more »
More Taxpayers Now Qualify Under the Temporarily Expanded Program IRS agents are determined to take your money. At least they are also determined to make it fairly easy to pay. You just have to know the right places to look, and in many cases, an IRS streamlined installment agreement may be just the ticket.
Overview of IRS Failure-to-file Civil Penalties Criminal tax evasion cases are difficult to establish in court, because there are so many moving parts and the burden of proof is so high. Much like the case against Mr. Capone, the criminal prosecution may only be Round One, because the IRS still has tools available to get… Read more »
Why the IRS Accepts Offers in Compromise To better understand the elements of the Offer in Compromise program, one must first understand what this program is not. First, although the IRS substantially liberalized and broadened the program in 2006 and again in 2012, the OIC is not a lifeline to taxpayers. The overarching concern in… Read more »
Most law-related information on the web comes with a disclaimer towards the end. When discussing foreign real estate and offshore disclosure, though, I would put the disclaimer at the very beginning: It is strongly suggested that you talk to an attorney with experience in this area. Why at the beginning? Because I want to emphasize… Read more »