IRS and Tax Penalties
Every year April of 15th is the Tax Day- it is the day by which one is ought to file and pay the taxes for a financial year. Every citizen and every business are ought to pay according to their income and assets. This date is known by everyone and still people manage to fail to do it in time. This is when IRS starts to take the steps.
Delay In Filing
Delaying in filing the tax bring penalties your ways. A penalty of 5% is levied for each month that you exceeded after the tax day. This limit never crosses the 25%. One can avoid this penalty just by filing the taxes in the right time. Tax filing is not the end of it. One is required to pay the tax bill within the same date- that is 15th of April every year. Failing to do so also gets penalized by the IRS. The organization requires everyone to pay taxes quarterly and pay all the yearly due by the tax day. Having $1000 or more dur by the tax day can also get you penalized. If your income and assets put you in the range of $1000 tax bill, it is better to pay the taxes in time to avoid the penalties.
Once you get penalized, It is better not to rush to pay it right away. The tax laws or the officials are not mase of stones. It is possible to get a payment plan, penalty waiver and reduced rate. But as a layman, you might not have clear idea about all these things. You need to get in touch with a tax relief professional who knows about all these details. They can represent you before IRS and put forward your appeal to help you with a better tax abatement plan.