Part III Penalties and Interest (Problems 6-10)

Each year, the IRS issues well over thirty million penalties against individuals and businesses.

Revenue from these assessments is often in excess of $15 billion. As a result, this is one of the largest sources of continuing frustration for citizens. Every year, the Taxpayer Advocate's Annual…

To make matters worse, interest on a tax bill often doubles, triples--even more--the debt. And this is one area where the IRS flat lies about one's right to deal with the problem. IRS publications declare that interest is always added and can never be canceled from a delinquent debt. While that is true in many cases, it is not a universal rule. There are several circumstances under which interest is legally subject to cancellation and like penalties, the procedure is quite simple.

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