IRS Interest & Penalty

Tax season is here. What if we don't file this year or under report income?

How much do you we owe? Interest & Penalty are a taxpayer's worst nightmare.

Here's how they are calculated:

Penalty:

• Failure to File penalty: calculated based on amount you owe on tax return, 5% for each month, up to max penalty of 25% for each month the tax return is late.

• Failure-to-pay penalty: calculated based on amount you owe is 1/2 of 1% for each month the tax is not paid, cannot exceed 25% of total amount due.

• Failure to file and failure to pay penalties apply at the same time, the maximum combined penalties for the first five months are 25%.

Interest: is based on the amount of tax you owe, and with each day it's not paid in full, it varies each three months with types of return. Interest is very difficult to get abatement on it.

Please connect if you need help with a notice contact@2cherrytax.com

or call +1 925-587-3405