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Estimated Tax Penalty

Discussion in 'Political Debate & Discussion' started by Salty, Apr 17, 2013.

  1. Salty

    Salty 20,000 Posts Club
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    Did you know that you could be subject to a Tax penalty if you did not have enough money withheld!

    Let me get this straight - if you don't "loan" enough money to the Govt - interest free- than you must pay a penalty!

    In that case - the Govt should start paying interest (at the same rate they would charge you) for holding your money hostage.

    Are you on board with me -

    But then again - I am an advocate of the Auto Electronic Tax anyways.
     
  2. blackbird

    blackbird Administrator
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    I pay estimated taxes quarterly-----I have been told that just the opposite it true, also

    If you pay too much taxes quarterly---you can be subject to a penality, too!!

    I believe it all boils down to the attitude of the IRS agent going over your files!!!
     
  3. Crabtownboy

    Crabtownboy Well-Known Member
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    Yep, it is true. I forget what the percentage is where the fine kicks in.

    You are right again.

    If you file an amended tax return in the future and are owed a refund at that time you are paid interest on that amount. That happened to me years ago. I found a deduction I had missed and was owned a refund and, indeed, a bit of interest had been added to the refund amount.
     
  4. Salty

    Salty 20,000 Posts Club
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    As far as a amended return - you only have 3 years, but the govt has 7 years (from time you file*) . I say the time should be consistent!

    but the main question is: Should the govt fine you for paying too little on withholding?

    And now a second question - thanks to Blackbird - the govt should NOT fine you for excessive payments

    Sounds like we need to write our congressmen and Senators
     
  5. Crabtownboy

    Crabtownboy Well-Known Member
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    You can also be fined it you withhold way too much.
     
  6. Salty

    Salty 20,000 Posts Club
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    That fact has been established.

    I know what I going to do about it?

    What are you* going to do about it?

    Salty

    * "you" being plural
     
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