Tax Defense Network Explains IRS Penalties
Tax Defense Network consults hundreds of taxpayers monthly whose tax debts have grown significantly because of penalties. Tax Defense Network brings you information about IRS penalties that can help taxpayers avoid and resolve them.
JACKSONVILLE, FL, July 21, 2012
Tax Defense Network consults hundreds of taxpayers monthly whose tax debts have grown significantly because of penalties. There are many ways to get the penalties and interest removed. Tax Defense Network brings you information about IRS penalties that can help taxpayers avoid and resolve them.Taxes that are not filed by their deadline incur penalties of 5 percent of the debt every month for a maximum of 5 months. Tax Defense Network suggests taxpayers file for an IRS extension if they are not able to file their return on time.
Taxpayers who understate their taxes substantially may be charged penalties. Tax Defense Network explains that the amount in penalties depends on the amount of taxes understated.
If the difference between what the taxpayer filed and the actual tax figure is more than 10 or $5,000 on an individual return, it is considered a substantial underpayment by the IRS. To avoid penalties, Tax Defense Network advises taxpayers to file their return correctly.
There are exceptions when penalties are not charged by the IRS in cases of non-compliance. These exceptions are called reasonable causes. Determining whether or not a reasonable cause exists depends on various factors and circumstances. Tax Defense Network notes that the IRS examines any reason taxpayers provide to determine whether they are in conjunction with the IRS' guidelines or not.
Tax Defense Network advises approximately 4,000 taxpayers monthly, with millions in back taxes owed to the IRS, and most are ballooned by penalties the IRS applies while the taxpayer is without a resolution. Tax Defense Network believes that all taxpayers should seek the most beneficial arrangement with the IRS to pay back their tax debt.
Tax Defense Network is "A" rated with the Better Business Bureau, and a member of the Jacksonville Chamber of Commerce and Dunn and Bradstreet. Incorporated since 1997, Tax Defense Network aims to help Americans eliminate their tax debt through information and education.
For more information on Tax Defense Network, and its debt relief services, please visit http://www.taxdefensenetwork.com/pr or call (888) 605-5657 for a free consultation. For other inquiries, contact kara.nuckles@taxdefensenetwork.com