The head of Fred Fuller Oil and Propane Co, of Hudson NH, has had an IRS tax lien placed against him this month. Frederick Fuller opened oil facilities in eight cities across New Hampshire. He has had an tax lien placed against him for failing to pay his taxes in the years 2006, 2007 and 2008.
When a taxpayer fails to pay their taxes, the penalties and interest begin. The IRS applies .5% penalty on the total taxes due. The penalties continue each month until the total penalty reaches 25% of the unpaid amount due, not counting the interest due on the amount. Taxpayers who fail to file their income tax returns are breaking the law in doing so, and will face harsher penalties from the IRS. The penalty for failing to file income tax returns is 5% each month with a maximum of 25%.
An individual who cannot pay their tax bill has it in their best interest to still file their tax return to avoid being hit with harsh penalties. The IRS also allows taxpayers to file an extension for their IRS tax returns if they are unable to complete all forms necessary. Taxpayers must still pay their taxes even though they have applied for an extension on filing. The deadline this year for IRS tax extensions is October 17th, 2012.
Fuller has said that he plans to meet with the IRS and take care of his tax debt problem. He owes $1,765,709 for 2006, $235,762 for 2007 and $569,671 for 2008 to the federal government if the IRS lien is correct. A tax lien is a hold placed on a taxpayers account that flags the individual’s credit and assets for the IRS. The IRS basically “skips ahead in line” of any other creditors an individual might owe. The IRS tax lien is not the only problem Frederick Fuller is facing, he has also been charged with a misdemeanor sexual assualt that is set to go to trial later this year. Fuller pled not guilty to the charges of assualting a 29 year old woman.