Inflated Tax Penalties

So we all know that every year one thing is always set to increase…inflation. The IRS is now taking a look at their tax penalties to ensure that they maintain their bite during these inflationary times. A recent report by the GAO (Government Accountability Office) reveals that inflation has significantly decreased the real value of some civil tax penalties with fixed dollar amounts. The report goes on to say that the decline in value could weaken the deterrent effect of penalties and the treatment of taxpayers over time.

Maybe coming soon to a mailbox near you will be an increase in your tax penalties, but of course the easiest way to alleviate this situation is seek out a tax advisor that can keep you ahead of the ball year round. Don’t let inflation bite you in the tax pocket too.

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