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.
New Jersey Governor Says Enough is Enough on Taxing the Wealthy
New Jersey Governor Says Enough is Enough on Taxing the Wealthy It seems that no tax is a bad tax when it comes to the “left” side of the government. It’s a well-known fact that the wealthiest Americans pay the largest portion of the country’s taxes. However, there are some government leaders that lean “right”…
Clinton’s Using Careful Strategies to Avoid Tax They Support
Clinton’s Using Careful Strategies to Avoid Tax They Support Have you ever wondered what wealthy democrats do when tax laws they support and vote for come back to apply to them? Although people typically associate being wealthy with republicans, there are plenty of rich democrats in the nations’ capitol as well. So just what do…
California Going After Tax-Evaders
We have discussed the federal government’s efforts to track down tax-evaders many times before, but the IRS isn’t the only tax agency looking to crack down on those who don’t pay their fair share of taxes. The California Franchise Tax Board is in the middle of a five-and-a-half-year effort to automatically find and identify noncompliant…
The IRS is Not a Bully, No.4
The IRS is Not a Bully You can poke a bully in the nose. Palo Alto, CA. July 4, 2014 – This is the Fourth installment of “The IRS is Not a Bully” series, identifying taxpayer concerns and the difficult position in which Congress puts the IRS. Namely, applying ever increasing pressure to operate in…