Tax Penalties and Interest

There are several reasons why the IRS assesses tax filing penalties. Note that the IRS is legally bound, under Internal Revenue Code (IRC) § 6601, to charge interest when a tax filer fails to pay the full amount of tax due to the IRS on time. Additionally, the IRS is entitled to charge interest on assessed penalties. Interest and penalties will continue to accrue until the outstanding tax due, interest, and penalties are paid in full. Learn about tax filing requirements and representation in the event that tax penalties and interest are assessed.