Glossary

Failure-to-Pay Penalty

The Failure-to-Pay Penalty is imposed by the IRS when taxpayers fail to pay their owed taxes by the due date. Understanding and managing this penalty is crucial for financial compliance.

Failure-to-File Penalty

The Failure-to-File Penalty is imposed by the IRS on taxpayers who do not file their tax returns by the deadline. It is essential to understand this penalty to avoid additional financial burdens.

Reasonable Cause

Reasonable Cause is a tax principle allowing taxpayers to avoid penalties if they show that failing to comply was due to circumstances beyond their control.

Penalty Abatement

Penalty Abatement is a relief measure that allows taxpayers to reduce or eliminate penalties imposed by the IRS due to late filing or payment issues.