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According to fool.com, individual taxpayers, business owners, and those who entrust their finances to others could face potential penalties for these infractions:
Individual Taxpayers
- Failure to file: A penalty is levied for those who fail to file their taxes each year;
- Failure to pay: Those who owe the IRS money after filing and fail to pay may also be financially dinged;
- Inaccurate return: Those who “get creative” with their returns by omitting income or claiming deductions they don’t qualify for are likely to be caught by federal officials;
- Dishonored payment: Penalties could also be enforced for anyone who pays their taxes with a check that bounces or a debit card with insufficient funds in the account.
Business Owners
- Failure to deposit: Small business owners who fail to pay employment taxes accurately or on time are likely to face financial penalties;
- Underpayment of estimated taxes: Business owners can also be hit by a penalty for failing to pay estimated taxes accurately or on time.
Trusting The Wrong Person
- Tax preparer misconduct: “You can owe more in taxes than you thought you did simply because you trusted the wrong person to prepare your return,” the report states. “You may not end up paying for their sins, but if you leave your taxes to a preparer who tends to get overly creative, their behavior is considered misconduct by the IRS, and they'll be hit with a penalty.”
The complete report can be found here.
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