IRS Warns Taxpayers About Paying Massive Penalties

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IRS Warns Taxpayers About Paying Massive Penalties
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The tax agency said there are options available for those who missed the April tax filing.

The Internal Revenue Service has issued a stark reminder to taxpayers who missed their April deadline that they could face severe penalties if they fail to fulfill their obligations, but added that there avenues available to pay what they owe the government.Under tax laws, the agency pointed out that missed tax payments could mean 8 percent interest on what's owed that compounds daily.

'In addition to penalties, interest will be charged on any tax not paid by the April 15 due date and any assessed penalties,' the tax agency said. 'Interest stops accruing as soon as the balance due is paid in full. The law does not allow for interest abatement based on reasonable cause or first-time relief.'The IRS encouraged taxpayers to pay what they can and explore options for the outstanding amounts.

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