Local tax late fees excessive?

Question

I recently got a letter in the mail saying i owed local taxes of $228.44 for 2004 and $157.46. I'm ok with that and willing to pay these. but the have also added $84 in INTEREST and $120 in FEES. This seems excessive? is it? Also is there a tax advocacy group that I could contact?

Answer 1

The Interest and Penalties are set by state law.  You can contact the local revenue agency and ask them to wave the penalty but they are not required to do so.

Answer 2

The interest and fees are set in State law.  Your only chance would be to challenge the law in court and have it declared excessive.  

Given the amount that you owe, the cost of doing that would FAR exceed the amount that they are demanding.  Spending thousands in legal costs to challenge a $120 fee just does not make economic sense.  

Even if you won your case, the most that the courts would likely award you for legal fees would be half of the $120 award.  Good luck finding an attorney willing to fight that battle for $60!  Heck, good luck handling that Pro Se for that little.

Answer 3

Sounds right to me. They charge large fees to so people wont be late.