sarasota chic

Nutmegger

Didn't the filer set up a plan for you to pay off the taxes? It seems strange to file without either paying the obligation in full or arranging a payment plan.

sarasota chic

Hotscot

https://www.irs.gov/payments/payment...ent-agreements

It sounds as though you're talking about tax year 2018 but if you under reported income in previous tax years you may have to file amended taxes.
Is this the first time you've had this issue?

And if your employer in previous years was taking enough out but in 2018 did not, I wonder what changed? Trump tax cut?

sarasota chic

Hotscot

In case you didn't see this...
'And if your employer in previous years was taking enough out but in 2018 did not, I wonder what changed? Trump tax cut?'

Hopefully though you only have this problem for 2018.

sarasota chic

sarasota chic

Rete

Will this 'payment plan' incur penalties in paying in full before April 15th? If it does, and honestly I can't see that it won't, put it on your credit card and pay it all off at once and pay back your credit card. Interest and penalties will be a lot less than what IRS will charge.

Hotscot

If there are any proposed penalties or fees use the 'get out of jail card'.
It works for individuals and small businesses.
Basically you write a letter asking nicely not be penalized because you are generally compliant.

https://www.irs.gov/businesses/small...trative-waiver

Pulaski

I suspect that the envelopes are for you to make quarterly payments for the 2019 tax year. We have had a tax bill slightly over $1,000 a couple of times, back when we filed paper returns, and what came back were quarterly payment vouchers for the following tax year - which we ignored …. And after filing the following year got a small tax refund. In other words if your current employer is making adequate/ increased withholdings for 2019 there is no need to make quarterly payments, and not using the vouchers will not lead to the IRS harassing you.

I agree with Nutmegger above, it is customary to pay your tax bill simultaneously with filing your return, though as you have filed significantly ahead of the April 15 deadline, you still have plenty of time to pay your bill without penalties.

Pulaski

Do you have experience of paying interest and penalties? I am going to guess "not".

We have had "interest and penalties" several times, and the amount is miniscule, really not worth worrying about. And a couple of times when we paid a tax bill late, with the incremental fees and penalties per our CPA's calculation, a few weeks later after filing and paying, ….. most if not all of the penalty amount was refunded to us.

Rete

Corrected my post.

Rete

No, I have not. However, my accountant in 2016 didn't send in the T4 form for husband's Canadian pension which showed the foreign tax credit/tax paid in Canada and as a result we received a notice of payment owed with penalty and interest and it was far from miniscule. It was straightened out and no tax was owed but still having to pay several hundreds of dollars in penalty and interest is too large an amount.

Pulaski

We were six months late, and over $1,000 owed, somewhere around $1,400 if I remember correctly, and the penalty was, as best I remember, less than $100, I think around $60.