IRS Resumes Sending Collection Notices After Pandemic Pause
Starting this January, the IRS gears up to send automated collection notices and letters to individuals with tax debts predating 2022 and to businesses, tax-exempt organizations, trusts, and estates with debts before 2023. There are exceptions for those dealing with debts spanning multiple years. These notices and letters, previously put on hold due to the […]
Understanding Tax Penalties and Interest: What Taxpayers Should Know
Tax Penalties Taxpayers who fail to file their taxes on time might face a failure-to-file penalty. Typically, this penalty amounts to 5 percent of the unpaid tax for each month or part of a month that the tax return remains overdue, reaching a maximum of 25 percent. Another penalty, the failure-to-pay penalty, is applicable when […]