Penalties & Interest
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Offer in Compromise Tax Lien Abatements Bankruptcy Collection Appeals
|Interest - Per annum, compounded daily||
|Late Filing Penalty||
5% per mo. or any portion thereof. Max accumulative of 25%
|Late Payment Penalty||
0.5% per mo. or any portion thereof. Max accumulative of 25%
|Accuracy Related Penalty||
|Civil Fraud Penalty||
Interest - charged on the unpaid tax and penalty balances. The rate of interest changes each calendar quarter.
Late Filing Penalty - charged for not filing a tax return or an appropriate extension by the due date. This is the penalty that accumulates the fastest. File on time even if you can't pay.
Late Payment Penalty - charged for not paying tax due on a return by the due date.
Accuracy Related Penalty - charged for inaccurate or sloppy records that result in an incorrect tax liability being reported.
Negligence Penalty - charged for reporting items incorrectly due to lack of concern for accurate records. You may be able to negotiate this down to the lesser Accuracy Related Penalty.
Civil Fraud Penalty - charged for deliberately reporting items incorrectly. You may be able to negotiate this down to the lesser Negligence or Accuracy Related Penalties.
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