The Internal Revenue Service (IRS) has issued a warning to taxpayers who fail to meet their tax responsibilities, as penalties may be imposed. There are several reasons why the IRS could charge a penalty, with four primary causes highlighted in their latest advisory.
1. Failure to File Your 2024 Tax Return on Time
One of the most common penalties arises when a taxpayer misses the deadline to file their tax return. The IRS allows tax filing for 2024 returns between January 27, 2025, and April 15, 2025. While this gives taxpayers ample time, failing to file by the deadline can result in a penalty. If you require more time to prepare your return, you can submit a request for an extension after making a payment.
2. Failure to Pay Taxes Due or Pay Correctly
Another reason the IRS may issue a penalty is due to a failure to pay the taxes owed by the deadline or paying them incorrectly. Taxpayers should ensure they pay the correct amount and by the due date to avoid penalties. Some types of penalties include:
- Accuracy-related penalties
- Failure to pay or file
- Failure to submit correct information returns
- Failure to deposit taxes
- Errors in claims for refunds or credits
- Dishonored checks
- Tax preparer penalties
- Underpayment of estimated taxes
- International reporting violations
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3. Incorrect or Inaccurate Tax Filing
Taxpayers who do not file accurate tax returns for 2024 may also face penalties. This can include mistakes or omissions that affect the accuracy of the return. For many, hiring a tax preparer can be a helpful solution to ensure accuracy and prevent penalties. A professional can handle the preparation of the return, making it easier to comply with IRS guidelines.
4. Failure to Provide Information Returns on Time
The final common penalty arises when taxpayers fail to provide necessary and accurate information returns within the required time frame. These returns can include forms like 1099s or W-2s, and not filing them correctly can lead to penalties.
How to Avoid IRS Penalties
To avoid facing penalties, taxpayers should:
- File accurate and complete tax returns for 2024
- Ensure taxes are paid on time and in the correct amount
- Submit all required information returns before the deadline
If you need extra time, make sure to pay your tax liability and file for an extension at IRS Extension Information. By following these steps, you can avoid penalties and ensure compliance with IRS requirements.
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