| Interest - Per annum, compounded daily (for Sep 1 thru Dec 31, 2008) |
6% |
| Interest - Per annum, compounded daily (for Jun 1 - Aug 31, 2008) |
6% |
| Late Filing Penalty |
5% per mo. or any portion of. Max accumulative of 25% |
| Late Payment Penalty |
0.5% per mo. or any portion of. Max accumulative of 25% |
| Accuracy Related Penalty |
20% |
| Negligence Penalty |
25% |
| Civil Fraud Penalty |
75% |
See below for further information.
Interest - charged on the unpaid tax and penalty balances. The rate of interest changes each calendar quarter.
Late Filing Penalty - charged for not filing a tax return or an appropriate extension by the due date. This is the penalty that accumulates the fastest. File on time even if you can't pay.
Late Payment Penalty - charged for not paying tax due on a return by the due date.
Accuracy Related Penalty - charged for inaccurate or sloppy records that result in an incorrect tax liability being reported.
Negligence Penalty - charged for reporting items incorrectly due to lack of concern for accurate records. You may be able to negotiate this down to the lesser Accuracy Related Penalty.
Civil Fraud Penalty - charged for deliberately reporting items incorrectly. You may be able to negotiate this down to the lesser Negligence or Accuracy Related Penalties.
Copyright © 2001-2008 by Gary W. Lundgren, EA
