You open your mailbox, and there's a letter, from the I... R... S! Questions start racing in your mind. How did they find me? What does this letter mean? Am I going to be able to afford this? When do I have to pay them? Who can help me fix this?
Over the past three years, I’ve negotiated musicians out of $863 to $1,595 of penalties from the IRS for not paying their taxes by the due date or filing their tax returns late.
You'd be surprised how many musicians can’t pay their taxes when they're due. Each year, seven million taxpayers don’t file their returns on time or don’t pay by the due date. Of those, nearly two million qualify for penalty relief.
Some of the most painful and expensive fees from the IRS are usually failure-to-pay penalties, which can be up to 25 percent of the tax you owed. Of course, the best way to avoid IRS penalties is to not let them happen in the first place. But can you get IRS fees waived if you didn't have the money to pay your band’s taxes? Yep – here's how.