Penalties and Interest on Money Owed to IRS?
I feel like a complete idiot…
There was an error in my calculations last year when I claimed the Lifetime Learning credit on my 2007 tax return. I just realized my mistake now, because I went to calculate my taxes for 2008, and was told that I was doing it incorrectly.
Well, to make a long story short, I filled out amendment forms 1040X and IT-150X this afternoon and I owe the IRS $452 and I owe New York State $12. I was going to go to the IRS today, but it’s MLK Day, and the office is closed.
Does anyone know what the penalties and interest will be like? Will they understand that it was an honest mistake? I’ve never been in trouble with the IRS and I’d like to keep it that way. I tried looking for answers on the IRS website, but all I found was a bunch of jargon that doesn’t make much sense to me.
Also, if I go to one of their offices, will they let me speak to someone and pay my fines/fees/charges right then and there? Or do I have to send the forms in by mail?
It’s been a little less than a year since I filed my 2007 tax return.
Please help! I’m practically pulling my hair out with worry…
Thank you for your help!
Originally posted 2010-04-11 12:29:35. Republished by Blog Post Promoter
,,Will the IRS settle for less than what is owed on penalties and interest? ,Can IRS charge me 200% in penalties and interest because I missed filing a return.? ,How much would I owe the IRS in interest and penalties? ,I owe the IRS 5k in back interest and penalties. I have been unemployed all of 2009. can I negotiate reduce? ,Will the IRS charge me interest and penalties if they sent me a refund check overpayment? ,Comments (2)
Relax you made an honest mistake. File the amended tax return and full pay the amount you owe an IRS will then send you a bill for any penalties.
You could file the 2008 first get your refund and then file the 2007 1040X so it won’t delay your 2008 refund.
so sit back and relax IRS is has not had a chance to review all 2007 returns yet they are still finishing 2006 returns.
Take a deep breath everything will work out fine.
When you file your amended tax return, requires for waiver of penalty explaining your situation.
Interest is 6% in 2008 and 5% in 2009. Penalty is 0.5% per month. In short, about a $1 per month for evey $100 you owe.
Read http://taxipay.blogspot.com/2008/04/list-of-articles.html