Tuesday Tax Tip

IRS Penalty Relief Information: Penalties Eligible for Relief – Failure to File Penalty (Part 1 – B)

The failure to file penalty applies if you don’t file your tax return by the due date (includingextensions). Interest on a penaltyThe IRS will charge interest on penalties.The date from which the IRS will begin to charge interest varies by the type of penalty. Interestincreases the amount you owe until you pay your balance in…

IRS Penalty Relief Information: Penalties Eligible for Relief – Failure to File Penalty (Part 1 – A)

The failure to file penalty applies if you don’t file your tax return by the due date (includingextensions). How you know you owe the penaltyThe IRS will send you a notice or letter if you owe the failure to file penalty. Penalty amountThe failure to file penalty amount depends on the type of tax return…

IRS Penalty Relief Information (Part 1)

You may qualify for penalty relief if you tried to comply with tax laws but were unable due tocircumstances beyond your control. If you received a notice or letter, verify the information is correct. If the information is notcorrect, follow the instructions in your notice or letter. If you can resolve the issue, a penalty…

Taxpayer Advocate Service – 10 Most Serious Problems Encountered by Taxpayers Problem #10: Appeals

Problem #10: APPEALS – Despite Some Improvements, Many Taxpayers and TaxProfessionals Continue to Perceive the IRS Independent Office of Appeals as InsufficientlyIndependent EXPLANATION OF THE PROBLEMThe lack of independence and operational efficiency in the IRS Independent Office of Appeals(Appeals) process undermines taxpayer trust and prolongs dispute resolution. When taxpayersare unable to resolve their issue in…

Taxpayer Advocate Service – 10 Most Serious Problems Encountered by Taxpayers Problem #9: Compliance Challenges for Taxpayers Abroad

Problem #9: COMPLIANCE CHALLENGES FOR TAXPAYERS ABROADTaxpayers Abroad Continue to Be Underserved and Face Significant Challenges inMeeting Their U.S. Tax Obligations EXPLANATION OF THE PROBLEMTaxpayers abroad face vast difficulties in complying with their U.S. tax obligations. Many findthemselves trying to navigate a complex tax system they do not understand, and the IRS offerslimited assistance and…

Taxpayer Advocate Service – 10 Most Serious Problems Encountered by Taxpayers Problem #8: International

Problem #8: INTERNATIONAL – The IRS’s Approach to International InformationReturn Penalties Is Draconian and Inefficient EXPLANATION OF THE PROBLEMU.S. persons who receive money from abroad or who have certain foreign financial interests andcross-border business activities are potentially subject to a wide range of U.S. reportingrequirements. Many of these requirements come with significant penalty exposure when…