IRS is more aggressive in assessing penalties on tax returns. Although the IRS rules and regulations have had the penalties listed and how they were to be applied many times the penalties were not assessed. A prime example is the extension on a tax return. The extension is an extension of time to file the return not an extension of time to pay the tax due. In past years the IRS would charge interest on the tax due from April 15th until it was paid. Currently that same return will also have a failure to pay penalty and a failure to pay proper estimated payments penalty assessed in addition to the interest. Depending on the amount of tax due, the interest is $100 and the penalties are $200. In 2013 the IRS has been agreeable to removing the penalties because of good behavior of paying timely in the past. But you can only use your "Get out of jail free" card once every 3 years. It appears the IRS will be even more aggressive in 2014 with penalties. Most of the penalties will relate to the 2012 and 2013 tax years so you also have one or two years of interest assessed also. Unfortunately the interest is not waived. Any questions please give KatTax a call at 702-796-1040 ext. 105 for Larry or 106 for Kathy