If you don’t take care of them as promptly as possible, the taxes you owe will someday build up into a bigger problem. Aside from braving federal, state, and local tax offenses, the Internal Revenue Service (IRS) can likewise penalize you with additional tolls. In these situations, an Ohio IRS tax relief service could be your salvation.
Part 20 of the Internal Revenue Manual cites the fines and interest rates for people who fail to settle their levies early. The penalty scheme was established to react to the requirement for a broad approach to imposing penalties on offenders. The penalties concentrate on three key conditions: registration of earnings, payment of dues, and accuracy of information. Thefollowing are a few of the things you could face if you don’t manage your dues.
Underpayment of Taxes
The IRS can levy interest should you decide to pay less than what you owe. As per 4Q 2012, the IRS is charging three percent interest for incomplete settlements albeit it’s really pegged at five percent for companies and enterprises. The interest changes quarterly; it just so happened that the rates for 3Q 2012 were the same as in the current term.
Delayed Registration of the ITR
Because of the previous disasters that struck the U.S., the IRS deferred the cutoff for filing of income tax returns (ITR) to January 11, 2013. However, this exclusively benefits those who have been totally affected by the disasters. Bear in mind that overdue registration can require you an extra five percent for every month you delay though it must be mentioned that the highest penalty cannot go beyond 25 percent.
Discrepancy in Information
It would also do you bad to lie about your personal and tax information to the IRS; they do not see lies lightly. The IRS can fine you with an accuracy penalty of 20 percent for underestimation of income tax or contravention of laws. You can commission the services of an IRS tax attorney in Ohio to ensure you pay the right amount. Even honest mistakes can be fall under this sanction.
For more knowledge, visit the IRS website on IRS.gov. You can also ask a tax lawyer for tax-related information and assistance.
Ohio IRS Tax Relief: The Means to Preventing Tax Penalties