Federal tax penalties are imposed on those who fail to file a tax return when applicable and also those who fail to pay the tax owed. Filing late also has an imposed penalty attached to it unless a person can show just cause why it was late. Not only is there a one time penalty, but a person can be charged ﾽ of 1% each month afterward until the tax is paid. If a notice of intent to levy is imposed, 10 days later, the fee will increase to 1%. It all adds up rather quickly, especially if one isn't sure what they did wrong on their tax return to cause this uproar. In the case of combined penalties, 5% can be charged monthly. The time to contact a qualified attorney is when one first gets notice from the government about a tax discrepancy. The fees start adding up immediately so the sooner you get help, the more money you can save. It is possible to get the errors straightened out so that the person being penalized does not owe anything at all. Of course, that is not always the case, but it does happen. The earlier you contact a lawyer, the better.