Instant Tax Solutions Discusses the IRS Tax Penalty

In the U.S., the income tax system is set up to be paid as you go, Instant Tax Solutions says. For many Americans this process is simple, Instant Tax Solutions points out, as income tax is taken out of each paycheck. But the team at Instant Tax Solutions helps quite a few taxpayers who are either self-employed or work as contractors or consultants, and in many of these situations Instant Tax Solutions often observes that taxes are not withheld.

According to Instant Tax Solutions, in those instances the IRS expects taxpayers to make estimated tax payments in advance of the April 15^th filing deadline. This means filing quarterly, says Instant Tax Solutions. Failure to pay quarterly could result in a taxpayer being assessed a penalty, which, according to Instant Tax Solutions, kicks in if a taxpayer owes more than $1,000 at the end of the tax year.

Instant Tax Solutions says this is one of several types of penalties the IRS may assess, but it is a common one, as many taxpayers are caught off guard by just how much they owe at the end of a tax year. Another penalty that affects taxpayers is the failure to file penalty, which Instant Tax Solutions often sees assessed against taxpayers who allow the deadline to pass without filing. Failing to file isn’t the only reason the IRS will assess a penalty, Instant Tax Solutions says. Even if a taxpayer files on time, if that taxpayer doesn’t pay taxes due by the deadline, that taxpayer will face a failure-to-pay penalty, according to Instant Tax Solutions. Since the failure-to-file penalty is higher, Instant Tax Solutions urges taxpayers to file by the deadline and work out payment options later if they cannot afford to pay.

Generally speaking, failure-to-file penalties are generally five percent of taxes due for each month the taxes are not paid, Instant Tax Solutions explains. However, this will never exceed twenty-five percent, Instant Tax Solutions says.

Even for taxpayers who file on time, the IRS may also assess penalties related to inaccuracies and misinformation, Instant Tax Solutions warns. This can include ignoring regulations, misstating income tax, or failure to include enough information.

Instant Tax Solutions stresses the importance of working with an experienced tax preparer to avoid costly fees. Instant Tax Solutions maintains a staff of former IRS agents, tax attorneys, and accountants to help you, as well as negotiate with the IRS on your behalf.

Instant Tax Solutions Discusses Back Taxes

According to the professionals at Instant Tax Solutions, every year billions of dollars in back taxes go unpaid.  Unpaid back taxes, according to Instant Tax Solutions, can threaten a family or business and a taxpayer’s financial future. A delinquent taxpayer often faces many fears according to Instant Tax Solutions’ co-founder Byron Pedersen.  “From asset seizure to losing a business to the simple fear of being detected, the fear of the unknown keeps many individuals from coming forward,” points out Instant Tax Solutions’ Pedersen.  And, according to the Instant Tax Solutions website, ignoring the IRS notices and phone calls is never a good solution.

Instant Tax Solutions holds that once IRS agents begin collection proceedings, they can be unyielding.  This is when Instant Tax Solutions can assist clients with the right solutions.  According to the Instant Tax Solutions website, those solutions include filing the back taxes, responding in a timely manner to notices, filing original returns to replace SFR documents prepared by IRS and negotiating with the IRS for a satisfactory repayment plan.  These steps taken by the professionals of Instant Tax Solutions can help clients avoid increased penalties and fees, compounding interest, potential loss of property, as well as any possibly criminal actions.

Instant Tax Solutions says it is important to file a tax return, even if one cannot pay the debt.  “An individual cannot qualify for tax relief if they have not filed tax returns,” notes Instant Tax Solutions’ Byron Pedersen.  According to Instant Tax Solutions, failure to file a tax return is a criminal act.  However, failure to pay the IRS is only a civil manner.  “And while some individuals are shocked, the Internal Revenue Service will show up at the door of your home if you do not respond to their notices,” states the Instant Tax Solutions co-founder.  And yet, an IRS agent cannot enter the home without permission, adds Pedersen of Instant Tax Solutions. While the IRS will contact a taxpayer in default before seizing assets or freezing bank accounts, an individual “should not let it get to that point,” concludes the Instant Tax Solutions founder.  

Instant Tax Solutions was birthed out of a vision to join expert tax relief services with an absolute commitment to integrity. With genuine concern for clients and a combined tax relief experience of over one hundred years, the professional and highly educated staff continues to remain current with tax changes. The staff of Instant Tax Solutions offers their clients over one hundred years of combined tax relief experience.   For more information about the assistance offered by Instant Tax Solutions, visit them online at http://InstantTaxSolutions.com.