There are two ways that the IRS can assess a penalty to you – failure to file, or failure to pay; and it’s not out of the question that you could be subjected to both types of penalties. The IRS recently issued IRS Tax Tip 2011-74, which lists out eight facts they’d like you to know about these penalties.
Eight Facts on Penalties
- If you do not file by the deadline, you might face a failure-to-file penalty. If you do not pay by the due date, you could face a failure-to-pay penalty.
- The failure-to-file penalty is generally more than the