A tax problem occurs when an individual or business fails to properly file their taxes, resulting in a financial penalty. This can include failing to pay the correct amount of taxes due, filing late, or not filing at all. It can also be caused by incorrect information on a return, such as claiming deductions that are not allowed or omitting income. Tax problems can lead to significant penalties and interest charges from the IRS, including fines and even criminal prosecution in some cases. In order to avoid these issues, it is important for individuals and businesses to ensure they are up-to-date with their taxes and seek professional advice if necessary.
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