Penalty

[Jasminc88]

Hello, I filed taxes this year and was garnished for a penalty. However, I was sent another letter stating I have another penalty for the same year for a different amount of $5,000. How can they penalize me twice? 

[SwapnaM]

Yes, the IRS can and often does assess multiple penalties for the same year if different types of mistakes were made. They aren't penalizing you twice for the same error; they are penalizing you for different, separate issues. The IRS has several distinct penalties, and it's common for more than one to apply in a single tax year.

• Failure-to-File Penalty
• Failure-to-Pay Penalty
• Accuracy-Related Penalty

So, if you were garnished for one penalty (say, failure to pay), and later received a notice for another (Accuracy-related), it’s not a duplicate—it’s a separate issue.

• Review the IRS Notice Carefully

  • Each notice should specify the type of penalty, the amount, and the reason.
  • Look for the CP or LTR number on the top right corner of the letter.

• Dispute If You Believe it’s an Error

  • You can call the IRS or send a written dispute with supporting documents.
  • If you believe the penalty is a duplicate or incorrect, request a review.

@Jasminc88  Thanks for the question!!