Can We Avail Tax Deduction While Giving The IRS Penalties?
Internal Revenue Service, also known as IRS, is the federal body responsible for collecting taxes countrywide. They are also responsible for examining any irregularities found in tax collections. IRS follows the complex tax laws of our country to claim and fight against corruption. Understanding all these laws for an ordinary person is not easy. The IRS can impose a penalty on you when you file a late tax return. In this blog, we will discuss whether it is possible to get a tax deduction on our penalty or not. Typically, the IRS imposes penalties on your existing tax amount along with interest. To know further, read the following write-up. Why Do We Pay IRS Penalties? According to experienced tax experts (including federal tax lawyer ), a person needs to pay penalties only when they delay in paying taxes or don’t pay taxes at all. IRS imposes those penalties to discourage any irregularities. Although a penalty can help decrease late tax payments, it also adds pressure o