Tax Penalties in the U.S.

August 21, 2023

From legal citizens to undocumented immigrants living in the U.S., everyone is expected to fulfill their tax obligations. When a person ignores these obligations, intentionally or out of lack of information, they become indebted to the Internal Revenue Service (IRS). Your failure to meet your tax-filing responsibilities can ultimately result in penalties on the grounds of tax evasion.


Our certified tax preparers understand the severity of the situation after one is accused of tax evasion, so we will go over everything you need to know about tax penalties in the United States.

What Are Tax Penalties?

Taxpayers can be saddled with a tax penalty when they don't file and pay their taxes. These penalties are applied when tax laws are violated on a local or federal scale. Tax penalties are issued after a tax infraction is recorded, usually when people miss the deadline to make their tax payments. Presenting false information regarding a person's income and retained taxes also counts as an infraction.

Types of Tax Penalties

According to the information from the IRS, there are multiple types of tax penalties in relation to specific infractions. Let's go over each of the penalties in place:

• Information Return Penalties: This applies to taxpayers who omit relevant information on their tax return or fail to provide payee statements on time.


• Failure To File Penalties: This applies to taxpayers who don't file their tax return by the due date.


• Failure To Pay Penalties: This applies to taxpayers who fail to pay for the tax amount on their tax return before the due date.

• Accuracy-Related Penalties: This applies to those who file their tax return without reporting their real income or claim deductions or credits for which they don't qualify.


• Erroneous Claim for Refund or Credit: This applies to those who claim an excessive amount for their refund or tax credits while filing their tax return, and a reasonable cause does not apply.


• Failure To Deposit Penalties: This applies to employers who fail to pay the employment tax deposits or when they fail to report accurate information.


• Underpayment of Estimated Tax by Corporations Penalties: This applies to corporations who don't pay the taxes corresponding to their type of company, or if they pay them late.

There are other types of penalties applying to specific situations. The IRS online portal has the full list. If you have questions about a particular penalty on the list, a tax consultant can guide you through your process.

What Happens if I Get a Tax Penalty in the U.S.?

If you find a tax penalty under your or your company's name while checking your tax information, you can make an online payment through your bank account and credit/debit card. If the owed amount is beyond your means, you need to contact an IRS representative or request a tax preparer's assistance, preferably one who speaks Spanish fluently if you don't feel confident about following the process in English. A professional tax planner can help you address each penalty correctly so you can clear your debt.

Keep in mind that tax penalties can amount to thousands of dollars and even legal charges, including three (03) years of imprisonment mandated by court.

Avoid Tax Penalties With Our Professional Tax Preparers

United Tax & Accounting Group puts the best tax preparers at your service. With over 12 years of experience assisting individuals and companies, our accounting and tax services can help prepare and file your individual and business taxes without any delays. We can also help you overcome a tax penalty and defend your best interests through debt negotiations.


At United Tax & Accounting Group, you'll find the most dedicated assistance. We customize our services to the needs of all types of clients, including undocumented immigrants wishing to file their taxes according to the country's tax laws.

Our tax preparers can help you avoid tax penalties! Just call (786) 431-5576 or fill out our website's contact form to get more information. You can also contact our specialists via our online chat, and we'll be happy to clear out your doubts about tax penalties. United Tax & Accounting Group strives to provide the assistance that you and your company need.