Failure to pay taxes can result in serious consequences from "summary" of Income Tax Fundamentals 2021 by Gerald E. Whittenburg,Martha Altus-Buller,Steven Gill
Failure to pay taxes has serious consequences. The Internal Revenue Service (IRS) has the authority to take various actions against those who fail to pay their taxes. These consequences can range from financial penalties to criminal charges depending on the severity of the offense. The IRS may impose penalties for failure to pay taxes on time, failure to file a tax return, or underreporting income. One of the most common consequences of failing to pay taxes is the imposition of penalties and interest on the amount owed. The IRS can charge a failure-to-pay penalty of 0.5% of the unpaid taxes for each month or part of a month that the taxes remain unpaid, up to a maximum of 25% of the total tax due. In addition to penalties, the IRS can also charge interest on the unpaid taxes, which accrues daily and compounds over time. If a taxpayer repeatedly fails to pay their taxes, the IRS may ta...Similar Posts
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