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.
Communication Between Managers and their Employees
By Emily Topham Communication Between Managers and Their Employees Managers have a daunting task—finding the right level of communication between them and their employees. It can be difficult for new managers to transition into the level of communication that is required by a leadership position. But discovering how to communicate well can make or…
Which States Are Good, and Bad, for Taxes?
How attached are you to the state you live in? Although most people would rather not relocate, where a person lives can actually make a huge difference in his or her tax bill. That’s because Kiplinger recently released its list of the most and least “tax-friendly” states when it comes to taxes. The business publisher…
How Are Some Big U.S. Companies Shrinking Their Tax Bill?
Every company wants to save on its tax bill. Although tax inversions have been making a lot of news lately, there are many other methods that corporations use to cut back on their taxes. In fact, seven companies in the S&P 500 index, including some big names that everyone is familiar with, have been able…
Democrats Take Dead Aim at Tax Inversions
The democrat lead U.S. Senate has been making a lot of noise lately regarding tax inversions, the practice of U.S. companies moving their corporate headquarters overseas in order to avoid the high price of overbearing U.S. corporate taxes. Those senators have apparently made good on a recent promise that they would look to put a…