|
IRS Penalties |
|
| Violation | IRS Penalty Imposed |
| Late
Filing (If your IRS tax return is more than 60 days late, the minimum IRS tax penalty is the smaller of $100 or 100% of the tax owed.) |
5%
per month of the net tax due the IRS |
| Late filing with the IRS due to fraud |
15%
per month of the net tax due the IRS |
| Late tax payments |
0.5%
per month of the unpaid tax due the IRS |
| Negligence
or disregard of IRS tax rules and IRS tax regulations |
20% of tax underpayment due the IRS |
| Fraud |
75% of tax underpayment due the IRS |
| Substantial understatements of income tax (tax underpayments that exceed the greater of 10% of the correct tax liability or $5,000) | 20% of tax underpayment due the IRS |
| Over valuations of 200% or more but less than 400% of the correct amount | 20% of tax underpayment due the IRS |
| Over valuations of 400% or more of the correct amount | 40% of tax underpayment due the IRS |
| Interest Rates |
Currently 7% per Year |
