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IRS Tax Penalties in Detail

Mike Habib, EA Tax Relief & Tax Problem Resolution

The Internal Revenue Code imposes many different kinds of penalties, ranging from civil fines to imprisonment for criminal tax evasion.

If you do not file your return and pay your tax by the due date, you may have to pay a penalty. You may also have to pay a penalty if you substantially understate your tax, understate a reportable transaction, file an erroneous claim for refund or credit, or file a frivolous tax submission. If you provide fraudulent information on your return, you may have to pay a civil fraud penalty.

Summary of IRS tax penalty rules

Mike Habib, EA Tax Relief & Tax Problem Resolution

Taxpayers who do not file their tax return and pay their tax by the due date may have to pay a penalty. Here are seven things you should know about failure-to-file and failure-to-pay penalties.

What are your chances for being audited? IRS’s 2008 data book provides some clues IR 2009-22

Mike Habib, EA Tax Relief & Tax Problem Resolution

IRS has issued its annual data book, which provides statistical data on its fiscal year (FY) 2008 activities. As this article explains, the data book provides valuable information about how many tax returns IRS examines (audits), and what categories of returns IRS is focusing its resources on, as well as data on other enforcement activities, such as collections.

Pasadena, CA March 13, 2009 – The current recession offers the best opportunity for individuals and businesses to address their tax issues and effectuate a tax settlement with the IRS. The Internal Revenue Service has announced its willingness to resolve and settle delinquent tax accounts; this will help those taxpayers who’ve been struggling for years to fulfill their tax obligations. Tax relief is going to be easier for those who are also facing huge medical bills, recent job loss as well as those who are relying on Social Security.

“This is a very difficult period for the whole country but most specially to individuals who are heavily burdened by the financial obligations that they have to meet,” says Mike Habib, an Enrolled Agent who specializes in providing expert tax help to individuals and businesses. “With the IRS promising to be more flexible, the current conditions are giving rise to an opportunity for Americans to resolve their tax concerns and get proper help.”

The IRS has changed its policies for tax payments in response to the ongoing recession. It has taken on a more humane approach when it comes to addressing people who are finding it difficult to pay their taxes due to financial burdens. IRS employees are now provided with greater authority to be able to suspend collections particularly in situations where individuals are incapable of making their payments because of emergencies such as job loss or substantial medical bills.

Get your CA FTB withheld tax refund today by contacting Mike Habib, EA at 1-877-78-TAXES (1-877-788-2937)

CA Tax Rates

According to the California State Franchise Tax Board (FTB), partnerships that are not based in California should file withholding tax on the sale of real estate in the state. The CA tax rate is at 3 1/3 percent of the proceeds from the sale or 9.3 percent of the gain. The board also increased the alternative withholding rates for real estate sales by S corporations. These groups are now subjected to a 10.8% rate for the sale of real property. On the other hand, financial S corporations are subjected to withholding rates of 12.8%.

For installment sales

TIGTA audits effectiveness of the Federal Payment Levy Program [Audit Report No. 2009-40-031]:

Mike Habib, EA Tax Relief & Tax Problem Resolution

An IRS program to collect delinquent taxes through the use of levies needs some changes in order to reduce taxpayer burden, the Treasury Inspector General for Tax Administration (TIGTA) said in a recent audit.

Tax Relief Services

Filing tax returns is a necessary hassle, and everyone – even prudent individuals – are prone to errors. Tax delinquency is becoming a common problem as the harsh economy renders more people incapable of paying their taxes for various reasons.

Luckily, resolving delinquent tax liabilities need not be traumatic. If you’re one of the many individuals faced with circumstances that hinder the prompt payment of your taxes, don’t worry – all is not lost.