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What are some common types of tax penalties?

On Behalf of | Mar 8, 2022 | Tax Debt

Sources of financial strain can take on various forms and it might not always be possible to predict when such issues will arise or to keep from falling prey to monetary woes. For many individuals in Georgia, one of the most stressful times of year could pertain to tax season and the concept of filing taxes can be stressful enough on its own. Those who wish to protect their interests during tax season might find it helpful to know some of the most common types of tax penalties and how to mitigate the risks of encountering similar issues.

Types of penalties

Experts indicate that there are several scenarios in which a person might face tax penalties. One of the most common types of penalties could involve failure to file, and the fees for these penalties can be extensive. Those who struggle to file their taxes by the due date could benefit from knowing that they might be able to request an extension. There are also penalties associated with failure to pay tax debts by the deadline and those who struggle to meet obligations might benefit from seeking insight on their available options for aid.

According to experts, there may be many who pay taxes throughout the year and failing to pay the proper amounts could also lead to fees and penalties. Those who pay taxes quarterly may also find that inaccuracies in even one quarterly payment could prompt penalties. There could also be extensive fees involved should a person write a check to the IRS only to have that check bounce.

A strategy for relief

Dealing with tax penalties can be a harrowing experience and those who face similar concerns might not always know how best to approach the situation. Fortunately, there are attorneys who can evaluate the circumstances a person in Georgia is facing and provide much needed insight on all his or her available options. An attorney can help a client better understand what to expect from the process and assist in developing a strategy to reduce or eliminate tax debts through the appropriate channels.