IRS Penalties and Interest The obligation to pay taxes becomes even more burdensome when accompanied by penalties and interest. The Internal Revenue Service (IRS) imposes tax penalties for various reasons, such as failure to file tax returns on time, inaccurate tax returns, or failure to pay owed taxes. If you find yourself facing an IRS
IRS Penalties
Rethinking IRS Penalty Assessments: A Deep Dive into the Farhy v. Commissioner Ruling
Farhy v. Commissioner In a recent landmark ruling, Farhy v. Commissioner, the Tax Court has significantly changed penalty assessments under I.R.C. Section 6038(b) of the Internal Revenue Code. This ruling, rendered on April 3, 2023, carries significant implications for a broad range of taxpayers, potentially offering a basis to challenge or request refunds for penalties
Frivolous Tax Returns Can Be a Serious Matter
Frivolous Tax Returns The IRS can charge penalties of $5,000 for Frivolous Tax Returns and other Frivolous submissions made to the IRS. The US Tax Court may impose penalties of up to $25,000 when a Taxpayer makes frivolous arguments in Tax Court. A list of some of the frivolous arguments that can lead to penalties
IRS and FTB Penalties for Filing Late Taxes Should Your Accountant Neglect to E-file
Penalties for Filing Late Taxes The IRS and Franchise Tax Board (FTB) can charge penalties for filing late taxes or for the late payment of taxes. The penalties for filing late taxes and late payments charged by the IRS and FTB can be up to 25% of the tax owed. The penalties may be excused