What is an IRS Penalty?
The IRS has outlined tax penalties in the Internal Revenue Code. These IRS penalties are supposed to encourage “voluntary compliance” from taxpayers. The IRS has over one-hundred and forty different federal tax penalties. IRS penalties can be assessed for a wide variety of issues including; tax fraud, accuracy related penalties, late filing penalties, late payment penalties, failing to pay a tax, and filing a frivolous return. These IRS penalties can be quite costly. If you have any question about what an IRS penalty is and if it applies to you, then you definitely need to get help from a tax attorney. Fraud penalties As mentioned previously, a fraudulent return penalty is related to someone failing to report income or underpaying their income tax. These actions constitute fraud in every state and if caught, the fine is quite severe. The IRS underpayment penalty is 75% of the under paid tax amount and the penalty also has a 75% maximum rate. This is a very serious and costly IRS penalt
