Penalty

Forum|Forum|9 months ago
September 17, 2025
1 reply
6 views

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?

Ask the Experts - Extension III - Sept 2025

SwapnaM

Employee Tax Expert

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.