IRS Hitting Estimated Tax Filers With More Penalties

IRS

The IRS plays no favorites when it comes to taxpayers missing payments or not paying enough. However, those who pay their income tax via quarterly estimated payments had better pay particular attention because lately the IRS has been coming down hard on these individuals with much more frequency.

According to recent IRS data, the number of penalties issued by the agency has jumped 33 percent between 2007 and 2016, from nearly 7.5 million to almost 10 million. These taxpayers, who often work as freelancers and business owners, get penalized because they don’t withhold enough money from their income to pay the necessary taxes.

According to the IRS, the data would appear to indicate that these individuals are either making mistakes in their calculations or they simply aren’t aware they need to pay these taxes. As for the cause of the increase in the number of penalties, the Doesn’t really have the answer.

However, the agency believes the increase in the number of taxpayers that now work for themselves, either as business owners or as freelancers, is one factor that is likely playing a role in the rising number of penalties.

The IRS suggests anyone who is responsible to make quarterly estimated tax payments fill out the agency’s annualized income installment method worksheet in order to calculate his or her taxes correctly and avoid the penalty.

Posted in
Just Jokes

Just Jokes

Just Jokes One-liners Definitions of Accountants Newton’s Laws of Accounting Top 10 Signs Your Accountant is Nuts Top 10 Signs You’ve Hired a Bad Accountant Top 10 Pick-Up Lines of Accountants Top 10 Ways To Make Doing Your Taxes More Fun Top 10 Signs You Work in Public Accounting/Consulting You Might Be An Accountant If……

Jack Crawford

Strategic Planning for Life: A Moment with Jack Crawford of the Impact Venture Capital

Interview Transcript of: Strategic Planning for Life: A Moment with Jack Crawford of the Impact Venture Capital Jack Crawford: The fast-moving innovative area of technology was always fascinating to me and the idea of taking an idea and creating value in a short period of time was extremely interesting and so after being the founder…

Jennifer Lawrence; Luxury Lifestyle Logistics | Jennifer Laurence

Luxury Lifestyle Logistics | Jennifer Laurence

  About Jennifer Laurence Jennifer is the founder and President of Luxury Lifestyle Logistics. She is a consummate hospitality professional who has loved domesticity for as long as she can remember. Early in her college career, she discovered the world of professional home management and private service through an estate management internship and knew she…

Russell Hancock

The State of Silicon Valley | Russell Hancock

About Russell Hancock Russell Hancock is President & CEO of Joint Venture Silicon Valley, a position he has held since 2003. In this role Dr. Hancock is best described variously: as a civic leader, community gatherer, institution builder, social entrepreneur, and outspoken advocate for regionalism. Since taking the helm of Joint Venture he has quadrupled…