IRS Hitting Estimated Tax Filers With More Penalties

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.
How to Ensure Success in Your Career | David Cline
About David Cline David Cline is one of two founding partners of Global Allies. David is a seasoned veteran with over 30 years of experience in the hospitality and home furnishings industry. David along with his partner, Isaac Kubryk are committed to providing a higher level of product quality and service to the hospitality industry.…
Insynctive | Gary Goldstein
Transcript, Insynctive | Gary Goldstein Alan Welcome back. I’m visiting here today with Gary Goldstein. And Gary is the founder of instinctive. Gary, welcome to today’s show, Gary Hey thanks Alan! I appreciate you having me here today. Alan So Gary, for the listeners, can you give me your background and how you got to…
How I Got Into Philanthropy | Jay Brasher
About Jay Brasher Back in the 1970’s Jay and his wife made the decision to be be involved the Indian Placement Program by taking an 8 year old Navajo girl into their home during the school year so she could attend school where the Brasher’s lived- it was a big deal at the time…