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 »
If you’re having tax problems
Tag: tax penalty
Reasonable Cause for Penalty Abatement The IRS may grant penalty relief for reasonable cause based on all the facts and circumstances of your situation. This broad category of penalty relief can cover many different types of accidents or unexpected circumstances.
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
What are Trust Fund Taxes? Trust fund taxes include the Social Security, Medicare, and federal income tax a business withholds from its employees’ wages. These amounts are held in trust by the business until they are transferred to the IRS.