IRS rules adopted in late 2024 (IRC § 6751(b) regulations) require that many penalties be personally approved in writing by a supervisor before assessment. If that didn’t happen, the penalty might be invalid. Also, for people with a clean recent tax history, “First Time Penalty Abatement” can remove non‑compliance penalties. Many people don’t know these rights—so they end up paying penalties that could have been waived.

Tax liens no longer pull down your credit score via credit bureaus, but they remain in public records. Lenders & title companies dig up those records all the time. If there’s an unpaid lien against you, it can kill your mortgage deal. Resolve the balance now & get proof of lien release. Want help doing that? Visit my website below to book a call. 👉🔗 https://centssavvy.com/

Interest and penalties on IRS underpayments accrue daily, and at current rates for individuals both underpayments and overpayments are 7% per year, compounded daily.

Because the IRS is increasing enforcement (in FY 2022, 2,550+ investigations and ~$31 billion identified in financial/tax crimes) with high conviction rates, showing you’re diligent, compliant, and building a verified track record today protects your business tomorrow. Self‑employed and gig economy clients are especially vulnerable with tightening 1099‑rules and income‑reporting. The hustle you do now sets how credible you look when opportunity knocks.

Wage garnishment by the IRS remains in force until debt is paid, but if you can prove severe financial hardship or qualify for an Offer in Compromise (OIC), you may either pause garnishment or reduce what you owe.