Michele Finizio

NJ Criminal Defense Attorney

Unpaid Taxes

Unpaid Taxes Defense Lawyer in Cherry Hill, NJ Defends Clients Facing Tax Penalties in Burlington County, Camden County, Gloucester County, and Throughout NJ

As tax time rolls around, you may dread the annual process of filling out and filing your income tax return. What is worse than the filing process is the inability to pay taxes that are due with the IRS or the State of New Jersey. Then your situation becomes even more challenging. The accomplished New Jersey unpaid tax attorney at The Law Offices of Michele Finizio helps clients in Camden County, Burlington County, Gloucester County, and throughout South Jersey who have unpaid taxes with the Internal Revenue Service (IRS) or the State of New Jersey.

Facing a Tax Issue And Have Questions? We Can Help. Contact The Law Offices of Michele Finizio Today At 856-888-9059 Or Fill Our Our Convenient Online Contact Form For A Free Consultation About Your Case.

Skilled New Jersey Unpaid Tax Attorney Is Experienced In Dealing With IRS Procedures For Unpaid Taxes

So what happens if you do not pay your taxes on time? Or if you only pay a portion of the taxes that you owe before the official filing deadline? The answer is that the Internal Revenue Service (IRS) will mail you a letter or notice informing you that you have been issued a Failure to Pay Penalty.

When a taxpayer is late with a tax payment — which is considered any payment that is received after the due date — the IRS assesses a Failure to Pay Penalty. This penalty is assessed on the first day that your taxes are past due, which is after the filing date (the filing date for 2021 taxes is April 18, 2022). It is important to note that if you file for an extension of time to file your tax return with the IRS, the extension only extends the filing deadline, not the deadline for payment of taxes.

Knowledgeable Defense Attorney Understands the IRS Failure to Pay Penalty and Advocates On Behalf Of New Jersey Clients to Reach Favorable Outcomes

The IRS Failure to Pay Penalty is assessed monthly and is between one and 25 percent of the amount of unpaid tax, with a maximum monthly payment of 25 percent of the total tax you owe, until the tax is paid in full. To illustrate, consider this scenario: you owe $4,000 in taxes. If your Failure to Pay Penalty is one percent, your penalty is $40 for that month.

The IRS calculates the Failure to Pay Penalty as follows:

  • IRS sends the taxpayer a notice with the amount due and due date, which is generally 21 days after the notice is sent or 10 days after the notice is sent if the outstanding tax due is $100,000 or more
  • If the taxpayer does not pay the tax that is owed by the due date indicated in the notice, the Failure to Pay Penalty will be 5 percent of the tax that is not paid on time for each month or part of the month that it is not paid after the due date
  • If the taxpayer’s income tax return was filed on time as an individual and they have an approved payment plan with the IRS, the Failure to Pay Penalty is lowered to 25 percent per month or partial month for the length of the approved payment plan
  • If the tax that is due is not paid within ten days of receiving the notice from the IRS, the Failure to Pay Penalty is one percent per month or partial month
  • The IRS applies full monthly charges, regardless of whether the tax was paid in full prior to the end of the month

If this sounds confusing, it is understandable. Tax laws are complicated. Let us help.

The New Jersey unpaid tax attorney at The Law Offices of Michele Finizio has in-depth knowledge of federal and New Jersey state tax laws, and a full understanding of the IRS Failure to Pay Penalty. Learn what options are available to you for unpaid taxes; arrange a free consultation with a New Jersey unpaid tax attorney at The Law Offices of Michele Finizio today.

Frequently Asked Questions About Unpaid Taxes Charges in New Jersey

  • Is the IRS Failure to Pay Penalty the same as the IRS Failure to File Penalty?

    No. These two IRS penalties are different. If you do not file your taxes, then the IRS charges a Failure to File Penalty, which is a percentage of the tax amount that you owed but did not pay. If you failed to pay the tax that you owe, then the IRS may charge a Failure to Pay Penalty. If you have a Failure to File Penalty in any given month where there is also a Failure to File Penalty, the IRS will waive the Failure to Pay Penalty. The penalties for unpaid taxes are confusing, particularly when they are issued in conjunction with a Failure to File Penalty. For a greater understanding of what you might be up against if you have unpaid taxes in New Jersey, consult with the New Jersey unpaid taxes defense attorney at The Law Offices of Michele Finizio.

  • What happens if I am unable to pay the IRS the full amount that I owe on my taxes?

    If you are unable to pay the full amount that you owe the Internal Revenue Service (IRS) for your taxes, there are several different options for you to consider. First, you may apply for a payment plan with the IRS. This would not only enable you to pay what you can afford — if you have a payment arrangement with the IRS, they will reduce the Failure to Pay Penalty by half. If your financial situation prevents you from paying your taxes, you may apply for an Offer in Compromise or seek hardship status from the IRS. To fully explore the options available to you if you are unable to pay the IRS the full amount that you owe, arrange a free consultation with a New Jersey unpaid tax defense attorney at The Law Offices of Michele Finizio.