Well, in the case of something "willful" which this would qualify then them the penalties are X% PLUS standard their interest charges. A wealth person can get a better rate than the IRS interest rate alone let alone the penalty. And yes in this case my sig says it all.
Interest and penalties do apply to years in which you owe money. The interest charged on late payments changes quarterly. During the last several years the interest rate has ranged from a high of 9 percent to a low of 7 percent. The penalty for filing late is generally not more than 25 percent of the amount owed. The penalty for paying late is 1/2 of 1 percent per month, up to 25 percent of the amount due. So if my friend's family generates 1,000,000 in taxes every year. @9% per year (1,000,000*.09= 25% of the amount due (.25*1,000,000= 250,000) first year (1,000,000*.09) + (.005*1,000,000*12) =150,000 second year =150,000 third =150,000 Thus, one would pay 150,000 instead of approximately 1,000,000. Fifteen percent of the amount owed?
so what does one pay per month, quarter, or, to pay the money owed. How long cn one stve paying the intial? Do you have a reference page for this info? hoodooman: Yes, I suppose the majority of the money to be made, saved or, is in the years before the audit, but I'm still uncertain about how much one pays on the quarterly payments system?
If you mean is there a place it says you have to pay the tax plus the interest and penalty, there is no question that you have to pay the tax also. Anyone will tell you that.
No, I don't know where it is on the IRS website. I think you need to talk to a tax accountant or do some research on the IRS website.
When one is required to pay the initial debt is my big quesiton now that the others are well answered, thank you very much. These questions have been on my mind for years. I'm glad I dealt with them even though.
>obviously but when? Before they put you in jail. Consult a tax attorney...you won't like their answer I'm sure of that. I'm out. JB