Unpaid Taxes Defense Lawyer in Cherry Hill, NJ Defends Clients Facing Tax Penalties in Burlington County, Camden County, Gloucester County, and Throughout NJ
As tax time rolls around, you may dread the annual process of filling out and filing your income tax return. What is worse than the filing process is the inability to pay taxes that are due with the IRS or the State of New Jersey. Then your situation becomes even more challenging. The accomplished New Jersey unpaid tax attorney at The Law Offices of Michele Finizio helps clients in Camden County, Burlington County, Gloucester County, and throughout South Jersey who have unpaid taxes with the Internal Revenue Service (IRS) or the State of New Jersey.
Facing a Tax Issue And Have Questions? We Can Help. Contact The Law Offices of Michele Finizio Today At 856-888-9059 Or Fill Our Our Convenient Online Contact Form For A Free Consultation About Your Case.
Skilled New Jersey Unpaid Tax Attorney Is Experienced In Dealing With IRS Procedures For Unpaid Taxes
So what happens if you do not pay your taxes on time? Or if you only pay a portion of the taxes that you owe before the official filing deadline? The answer is that the Internal Revenue Service (IRS) will mail you a letter or notice informing you that you have been issued a Failure to Pay Penalty.
When a taxpayer is late with a tax payment — which is considered any payment that is received after the due date — the IRS assesses a Failure to Pay Penalty. This penalty is assessed on the first day that your taxes are past due, which is after the filing date (the filing date for 2021 taxes is April 18, 2022). It is important to note that if you file for an extension of time to file your tax return with the IRS, the extension only extends the filing deadline, not the deadline for payment of taxes.
Knowledgeable Defense Attorney Understands the IRS Failure to Pay Penalty and Advocates On Behalf Of New Jersey Clients to Reach Favorable Outcomes
The IRS Failure to Pay Penalty is assessed monthly and is between one and 25 percent of the amount of unpaid tax, with a maximum monthly payment of 25 percent of the total tax you owe, until the tax is paid in full. To illustrate, consider this scenario: you owe $4,000 in taxes. If your Failure to Pay Penalty is one percent, your penalty is $40 for that month.
The IRS calculates the Failure to Pay Penalty as follows:
- IRS sends the taxpayer a notice with the amount due and due date, which is generally 21 days after the notice is sent or 10 days after the notice is sent if the outstanding tax due is $100,000 or more
- If the taxpayer does not pay the tax that is owed by the due date indicated in the notice, the Failure to Pay Penalty will be 5 percent of the tax that is not paid on time for each month or part of the month that it is not paid after the due date
- If the taxpayer’s income tax return was filed on time as an individual and they have an approved payment plan with the IRS, the Failure to Pay Penalty is lowered to 25 percent per month or partial month for the length of the approved payment plan
- If the tax that is due is not paid within ten days of receiving the notice from the IRS, the Failure to Pay Penalty is one percent per month or partial month
- The IRS applies full monthly charges, regardless of whether the tax was paid in full prior to the end of the month
If this sounds confusing, it is understandable. Tax laws are complicated. Let us help.
The New Jersey unpaid tax attorney at The Law Offices of Michele Finizio has in-depth knowledge of federal and New Jersey state tax laws, and a full understanding of the IRS Failure to Pay Penalty. Learn what options are available to you for unpaid taxes; arrange a free consultation with a New Jersey unpaid tax attorney at The Law Offices of Michele Finizio today.
