As soon as, the Internal Revenue Service (IRS) brings about determination of patent negligence, then there is practically no way to prevent this tough tax penalty. The basis for this penalty is negligence, which is delineated as any conspicuous disregard of the IRS rules, whether it is caused by carelessness, recklessness or done with intention. However, nearly all excuses will not work against IRS, and usually it cannot be negotiated with IRS.
Interest expenses usually alter and can be excessive as it takes the IRS several years to find out if you do owe additional tax. On the other hand, if the Internal Revenue service (IRS) finds out that your underpayment is owing to your intentional disregard, then the fraud penalty will be assessed rather than the negligence penalty. Moreover, the amount of the fraud penalty is seventy-five percent (75%) of the underpayment because of fraud committed.
As well, the IRS will not assess the fraud penalty on top of other penalties. Nevertheless, if a taxpayer is also subjected to the penalties of failure-to-file and late-payment, thus the fraud penalty will be calculated instead of the other tax penalties.
Furthermore, each individual is indeed obliged to pay their taxes all over the year. Payments can be made through withholding or through estimated-tax payments. Too, you need to have paid ninety percent (90%) of what you do expect to be obligated from the IRS by the due date of the income tax return on April 15. Nonetheless, when you have paid your taxes in an amount that is equal to your actual tax bill from the previous year, you will not be subjected to a tough tax penalty.