TAS Tax Tip: Why do I owe a penalty and interest and what can I do about it? (May 10, 2022)

The National Taxpayer Advocate has made available for download their article, “TAS Tax Tip: Why do I owe a penalty and interest and what can I do about it?”, published on The National Taxpayer Blog. The abstract is as follows:

There are many reasons why the IRS may charge penalties on your tax account. The IRS is legally required, under IRC § 6601(a), to charge interest when you fail to pay the full amount you owe on time. Interest may also accrue on penalties. Interest, and any applicable penalties, will continue to accrue until you pay your balance due in full. Here are some of the most common penalties, information on why they may have been charged, and how to request penalty abatement (removal) if applicable.

First let’s talk about some common penalty charges on individual accounts, along with interest, and why the IRS charges them.

Click here to see the National Taxpayer Advocate’s summary of “TAS Tax Tip: Why do I owe a penalty and interest and what can I do about it?”

Posted by Marin Larkin, Associate Editor, Wealth Strategies Journal.