Voluntarily Report Additional Taxes And Avoid Interest Penalties
On January 7, 2005, the IRS announced that it will give taxpayers a break on interest penalties for voluntarily reporting of additional taxes owed. The new rule found in section 6404(g) suspends interest accrual for taxpayers on taxes due if the IRS does not notify you of potential liability. To take advantage of this safe harbor, you must report the additional taxes within 18 months of the filing of the return in question.
Need Help with Tax Debt
Problems?
Click Here To Talk to a Tax
Expert
If your previously paid interest penalties for reporting additional taxes, you may be due a refund. The IRS has stated that it will automatically refund such interest payments, but it is unclear how accurate this statement is and how long it will be before the IRS acts.
Need Help with Tax Debt
Problems?
Click Here To Talk to a Tax
Expert