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IRS Penalties For Tax Mistakes Rise By 33pc

by Mike Godfrey, Tax-News.com, Washington

17 August 2017


The number of US taxpayers penalized by the Internal Revenue Service for making mistakes or underpayments at quarterly tax-filing intervals has increased by a third over the past decade.

The number of penalties levied by the IRS rose from around 7.2 million in 2007 to around 10 million in 2016. Data from the IRS Data Book for 2015 and 2016 was analyzed by the Wall Street Journal, which calculated in the issuance of penalties by 40 percent of a five-year period, and the Washington Post drew attention to the 33 percent rise that occurred over the ten fiscal periods to 2007.

It has been suggested that the increase in the number of penalties issued may have been due to the rise of the gig economy and of increased peer-to-peer trading, with a greater number of taxpayers unaware of the income that must be declared and subject to tax. It could also be a sign that US taxpayers are struggling to meet their financial obligations following the financial crisis.

TAGS: compliance | tax | tax compliance | insurance | United States | penalties

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