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Filing taxes

Filing taxes

Old Mar 4th 2019, 8:20 pm
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Default Filing taxes

We filed our taxes last week with H&R block and we owe the IRS turns out my previous employer wasn’t taking enough tax out! What is the best and easiest way to pay the tax owed H&R block said we could send a cheque each month. Can we pay monthly via our checking account if so how do we go about this. TIA.
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Old Mar 4th 2019, 8:42 pm
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Default Re: Filing taxes

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.
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Old Mar 4th 2019, 8:46 pm
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Default Re: Filing taxes

Originally Posted by Nutmegger View Post
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.
No H&R block gave me 4 envelopes with the IRS address and instructed me to send a letter requesting a payment plan, no plan was set up by the filer.
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Old Mar 4th 2019, 8:51 pm
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Default Re: Filing taxes

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?

Last edited by Hotscot; Mar 4th 2019 at 8:55 pm.
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Old Mar 4th 2019, 8:55 pm
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Default Re: Filing taxes

Originally Posted by Hotscot View Post
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?
Yes it 2018 taxes that we owe, last year we got money back from 2017 taxes.
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Old Mar 4th 2019, 8:56 pm
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Default Re: Filing taxes

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.
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Old Mar 4th 2019, 9:00 pm
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Default Re: Filing taxes

Originally Posted by Hotscot View Post
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.
i hope so, if I go on the IRS website I can set up a payment plan to take care of the tax money owed.
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Old Mar 4th 2019, 9:16 pm
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Default Re: Filing taxes

Should H&R block assisted us in setting up a payment plan or is it up to us to do?
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Old Mar 4th 2019, 9:35 pm
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Default Re: Filing taxes

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.
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Old Mar 4th 2019, 9:38 pm
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Default Re: Filing taxes

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
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Old Mar 4th 2019, 11:28 pm
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Default Re: Filing taxes

Originally Posted by sarasota chic View Post
No H&R block gave me 4 envelopes with the IRS address and instructed me to send a letter requesting a payment plan, no plan was set up by the filer.
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.
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Old Mar 4th 2019, 11:33 pm
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Default Re: Filing taxes

Originally Posted by Rete View Post
…. . Interest and penalties will be a lot less than what IRS will charge.
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.
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Old Mar 4th 2019, 11:55 pm
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Default Re: Filing taxes

Originally Posted by Rete View Post
Will this 'payment plan' incur penalties if not paid 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.
Corrected my post.
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Old Mar 4th 2019, 11:58 pm
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Default Re: Filing taxes

Originally Posted by Pulaski View Post
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.
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.
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Old Mar 5th 2019, 12:02 am
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Default Re: Filing taxes

Originally Posted by Rete View Post
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.
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.
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