Tax penalties

If the tax is not remitted at the proper time or if you did not show the entire taxable amount while filing the return then you will be charged with tax penalties. In case if you cannot make the payment on that particular date you can ask for extension of the date with the help of extension form provided from the IRS office. But there will be interest on the taxable amount when paid after that date in such a case. The interest will be compounded daily if it is a case of extension. Make sure that the tax form contains all the information and details regarding the different taxable amount. But no penalties will be charged in case of honest mistakes. In such a case a notice will be sent to you asking to make the necessary changes that are required. But if you try to do fraud, the consequences can be severe. Also IRS has provided the provision to go for an appeal in case of charges, if issued any. If the appeal goes in your favor then you will be freed from the charges. Otherwise you will have to pay the necessary penalties put forward by them.