As a 15-year experienced Kissimmee tax accountant in Orlando, FL and leader in tax services in Orlando, we know that everyone who has a source of income is subjected to taxes. These must be paid throughout the year, and the leftover amount must also be paid at the end of the year. Failing to do so will result in tax penalties as well as interest on the amount of taxes that you owe. In the case that you have tax refunds, you may be paid additional interests on any delayed tax refunds. This entire process is managed by the Internal Revenue Service or IRS.
The IRS calculates penalties on any balance amount that is due on a delayed tax return. If you file late, but have a tax refund, then you will not be charged any tax penalties. If you are facing tax penalties, then you should hire an Kissimmee accountant in Orlando, FL so that you can get the required tax debt help. Otherwise, you might face problems in your tax preparation.
The IRS can charge you any penalty from the three general types: Failure to File, Failure to Pay and Interest. However, the policies pertaining to the penalties stated below can be changed anytime without any proper notifications when the IRS deems it necessary.
Orlando Tax Accountant Tip 1 – Failure to File Penalty
The Failure to File fine is determined from the period between the actually deadline of the tax return and the day when you filed a late return. For every delayed month, a penalty of five percent is charged which can increase up to twenty five percent. This is the maximum possible value for this penalty. You can calculate the penalty as a percentage of the tax due amount that is displayed on your return. In the case that your return has been delayed over five months, just multiply the tax by 0.25 to find your penalty.
Orlando Tax Accountant Tip 2 – Failure to Pay Penalty
The Failure to Pay charge is determined from the tax amount that you have to pay. For every month that you do not pay the tax in full, you will be charged 0.5%. Unlike the Failure to File penalty, the Failure to Pay charge has no maximum value, and will keep on increasing until you the pay off the actual amount that you owe.
Orlando Tax Accountant Tip 3 – Interest
The interest amount is also determined from the tax amount that you have to pay. The rates change after every ninety days. As of now, IRS has set the interest rate at 4% yearly. The interest amount is incurred for all those days when you do not pay the full balance due.
If you have back taxes and need tax debt relief services in Orlando, FL or Kissimmee, please contact us at 407-344-1012 for a Free Consultation. Our IRS enrolled agents and tax accountants will provide honest tax resolution services. Freedomtax Accounting main office is located in Kissimmee, FL, but we serve Central Florida, Orlando, Poinciana, St. Cloud, and Hunters Creek, FL, and many of our services can be provided nationwide as well. Our services include, small business accounting, bookkeeping, irs audit defense, tax planning, tax debt relief, incorporations, tax preparation, and non-profit 501 (C3) tax exempt status applications.