IRS Penalties

IRS or Internal Revenue Code is a law that has been made for taxations purposes. It mostly emphasizes on the income tax and intends to discourage the people from stating wrong income tax amount or filing late return statements or choosing any other wrong method that may not be allowed in a certain society.

            Different conditions can have different penalty amounts or percentage that is mostly pre determined. The percent value can vary under the IRS penalty rules and may also get high as 75% of the amount.

The penalty types also vary and differ in their nature. There may be a penalty for stating a wrong amount for the income tax paid. The fine may vary according to the rules and regulations. A fine is also charged for less income tax payment than what is due. And the fine amount may be up to 75% of the understated amount. A fine can also be due for filing a late income tax return and the fine amount can be 5% to 25% of the amount that has been paid late. The fine is also payable for a late income tax payment and ranges from 05-25% of the amount.