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Unpaid IRS Tax Debt: Interest and Penalties - A Financial Nightmare Waiting to Unfold

Unpaid IRS Tax Debt: Interest and Penalties - A Financial Nightmare Waiting to Unfold

Facing unpaid IRS tax debt can be a daunting experience. The complexities of tax law and the potential consequences of unpaid taxes can leave individuals and businesses feeling overwhelmed.

Omar Zambrano, an attorney at law specializing in IRS tax debt, offers his expertise on the subject and provides free consultations at 626-338-5505.

The IRS calculates interest on unpaid taxes quarterly. As of the second quarter of 2023, the interest rate for individuals is three percent compounded daily. Omar Zambrano emphasizes the importance of understanding how quickly this interest can accumulate. Interest begins to accrue from the due date of the return, not the filing date. Even if an extension is filed, interest will start from the original due date.

A failure-to-pay penalty of 0.5 percent of unpaid taxes is charged for each month or part of a month that the tax remains unpaid, up to 25 percent. Omar Zambrano can help you navigate this penalty and find the best solution for your situation.

The failure-to-file penalty is five percent of unpaid taxes for each month or part of a month that the return is late, up to 25 percent. This penalty is more severe, and legal guidance from a specialist like Omar Zambrano is highly recommended.

The IRS offers penalty relief for qualifying taxpayers. Omar Zambrano can assess your situation to determine if you qualify for relief based on reasonable cause or first-time penalty abatement.

The IRS offers payment plans for those unable to pay their tax debt in full. Omar Zambrano can assist in setting up a plan that minimizes penalties and interest.

Facing IRS tax debt is a serious matter, and professional guidance is essential. Omar Zambrano, an attorney specializing in IRS tax debt, offers free consultations at 626-338-5505.

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