IRS Late Return and Penalty Notices: Don't Let Filing Delays Cost You Thousands

Understanding IRS CP30 and CP88 Notices - Your Guide to Late Return Penalties. When you receive an IRS notice about late returns or penalties, time is of the essence. These notices can trigger costly financial consequences that grow more expensive every day. Taking immediate action can save you thousands and protect your financial future.

IRS CP30 Notice: Return Due Date Has Passed

What is a CP30 Notice? It’s a reminder that your return is overdue and penalties are starting to accumulate.

  • Shows original return due date
  • Displays current penalty calculations
  • Includes estimated tax owed
  • Provides filing instructions to stop penalties

Why It Matters: Failure-to-file penalties add 5% per month (up to 25%). The IRS may also create a Substitute for Return (SFR), leading to higher tax bills and faster collections.

IRS CP88 Notice: Substitute for Return Filed

What is a CP88 Notice? The IRS files a Substitute for Return (SFR) if you fail to file. These returns exclude credits, deductions, or dependents — usually resulting in a much higher tax liability.

  • Uses only income reported to IRS (W-2s, 1099s)
  • Applies standard deduction only
  • Assumes “Single” filing status
  • Ignores dependents and credits

Impact: An SFR can inflate your liability by 200–500%, and ignoring CP88 could also mean losing refunds forever.

Late Return Penalties Explained
  • Failure-to-File: 5% per month, max 25%
  • Failure-to-Pay: 0.5% per month, max 25%
  • Interest: Compounds daily, ~8% annually

Example: $5,000 tax debt can grow to $6,600 in just 6 months of non-filing.

Emergency Response Protocol
  • First 24 Hours: Gather documents, call Karme, stop penalties
  • First Week: File overdue return, start abatement process
  • First Month: Confirm IRS processing, monitor penalties, set compliance systems
Special Situations

Multiple Years of Unfiled Returns: Penalties compound across each year and escalate collection risks.

Business Returns: Higher penalties, payroll tax risks, possible business closure threats.

Penalty Abatement Relief
  • Reasonable Cause: Illness, natural disasters, family emergencies
  • First-Time Abatement: Relief for taxpayers with a clean history
  • Special Waivers: Disaster or IRS-related delays

Karme Tax Services prepares documentation and negotiates with the IRS for maximum relief.

Your Action Plan
  • Phase 1: Immediate consultation, stop penalties
  • Phase 2: Prepare and file accurate returns
  • Phase 3: Arrange payment or secure refunds
  • Phase 4: Set up compliance systems

Don’t Let Late Return Penalties Destroy Your Future

Every day you wait, penalties and interest grow. With professional help, you can stop penalties, recover refunds, and protect your financial future.

Emergency Hotline: 1-800-KARME-HELP
Email: emergency@karmetaxservices.com
Website: www.karmetaxservices.com/late-returns

Free Emergency Consultation: Call Karme today to protect your finances and resolve your IRS notice issues immediately.

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