IRS penalty for underpaying estimated taxes jumps to 8% of the shortfall from 3% two years ago - wit

[240B]

DAILYMAIL.COM
By KEITH GRIFFITH
3 December 2023

• Fine for underpayment of estimated taxes have been risings with Fed's rate hikes
• Penalty hit 8% as of October 1, up from lowest possible 3% in early 2021
• Fine mainly applies to self-employed workers who pay taxes each quarter

(more)
https://www.dailymail.co.uk/news/article-12819525/IRS-penalty-underpaying-estimated-taxes.html

More good news from the 'Bidenomics' administration. Remember how they said income tax reforms would only affect the super-wealthy? Well, that was a lie. We knew they were lying when they said it. And we were right.

What's even more comforting is that in the Biden administration all the IRS agents are strapped. They now carry weapons with them to enforce IRS edicts.

America has the silliest tax system ever in history. The government knows your income. They know exactly how much you owe. But they will not tell you what it is. You have to guess. Or as they call it, you have to 'estimate'. And if you guess wrong, you go to jail. The most bizarre tax system ever.

[Elderberry]

Back when there was no underpayment penalty, my dad would not pay until after his exemptions ran out in December and then, only after he received the 3rd demand letter from the IRS.

[The_Reader_David]

... The government knows your income....

Income from self-employment is profit, not revenue.  The government does not know your income, even if all your revenue shows up on a 1099, since they don't know your expenses until you tell them.  And there is revenue they don't know about, as well:  cash payments, small checks, small electronic payment. 

My wife is a psychologist, and yes, the payments from health insurance companies are reported to the Feds on 1099's, but copays, coinsurance and deductibles paid by clients, payments from self-pay clients, payments from debt collectors who tracked down deadbeats who didn't pay what they owed under the terms of their insurance, and expenses which have to be deducted from revenue to give actual income are not reported to the government except by us.

[Elderberry]

America has the silliest tax system ever in history. The government knows your income. They know exactly how much you owe. But they will not tell you what it is. You have to guess. Or as they call it, you have to 'estimate'. And if you guess wrong, you go to jail. The most bizarre tax system ever.

My brother in law was a CPA and he just loved doing battles for clients at each IRS appraisal. It didn't matter what was written on the original tax return. He was able to overwhelm the IRS agents with data until he was able to often get the agent to agree to a return that required his client to pay less taxes than the original return.

[libertybele]

My brother in law was a CPA and he just loved doing battles for clients at each IRS appraisal. It didn't matter what was written on the original tax return. He was able to overwhelm the IRS agents with data until he was able to often get the agent to agree to a return that required his client to pay less taxes than the original return.

That's a wonderful CPA!

[240B]

As banks become more and more 'nationalized', eventually the government will be involved in every financial transaction, including personal transactions. This is driving the elimination of cash currency. All financial accounts including investment and retirement accounts will become joint accounts, with the government having final authority over what you do with your money.

In this scenario, the government/IRS can till-tap your accounts in real time to get their cut of the action from whatever you are doing.

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IRS Free File: Do your Taxes for Free

IRS Free File lets qualified taxpayers prepare and file federal income tax returns online using guided tax preparation software. It’s safe, easy and no cost to you. Those who don’t qualify can still use Free File Fillable Forms.

Individual tax filers, regardless of income, can use IRS Free File to electronically request an automatic tax-filing extension.

Taxpayers in certain disaster areas do not need to submit an extension electronically or on paper. Check to see if you qualify and the due date of your return.

(more)
https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

I am not recommending this. Just FYI ...

[Bigun]

DAILYMAIL.COM
By KEITH GRIFFITH
3 December 2023

• Fine for underpayment of estimated taxes have been risings with Fed's rate hikes
• Penalty hit 8% as of October 1, up from lowest possible 3% in early 2021
• Fine mainly applies to self-employed workers who pay taxes each quarter

(more)
https://www.dailymail.co.uk/news/article-12819525/IRS-penalty-underpaying-estimated-taxes.html

More good news from the 'Bidenomics' administration. Remember how they said income tax reforms would only affect the super-wealthy? Well, that was a lie. We knew they were lying when they said it. And we were right.

What's even more comforting is that in the Biden administration all the IRS agents are strapped. They now carry weapons with them to enforce IRS edicts.

America has the silliest tax system ever in history. The government knows your income. They know exactly how much you owe. But they will not tell you what it is. You have to guess. Or as they call it, you have to 'estimate'. And if you guess wrong, you go to jail. The most bizarre tax system ever.

"... There's no way to rule innocent men. The only power any
government has is the power to crack down on criminals. Well, when there aren't enough criminals, one MAKES them. One declares so many things to be a crime that it becomes impossible for men to live without breaking laws.
......just pass the kind of laws that can neither be observed nor enforced nor objectively interpreted -- and you create a nation of law-breakers -- and then you cash in on guilt. Now that's the system, Mr. Reardon, that's the game, and once you understand it, you'll be much easier to deal with."

- p.411,
Ayn Rand, ATLAS SHRUGGED, Signet Books, NY, 1957

[Hoodat]

IRS penalty for underpaying estimated taxes jumps to 8% of the shortfall from 3% two years ago -

Unless your name happens to be 'Biden'.

[Hoodat]

"... There's no way to rule innocent men. The only power any
government has is the power to crack down on criminals. Well, when there aren't enough criminals, one MAKES them. One declares so many things to be a crime that it becomes impossible for men to live without breaking laws.
......just pass the kind of laws that can neither be observed nor enforced nor objectively interpreted -- and you create a nation of law-breakers -- and then you cash in on guilt. Now that's the system, Mr. Reardon, that's the game, and once you understand it, you'll be much easier to deal with."

- p.411,
Ayn Rand, ATLAS SHRUGGED, Signet Books, NY, 1957

Yep.

[240B]

Federal Income Tax
State Income Tax
Property Tax (along with a dozen other miscellaneous fees and taxes that come with property)
Sales Tax (this is a double tax. tax on all income and then another tax on everything you buy)
Death Tax
Gift Tax
and on and on and on ...

Lifestyle taxes
Vehicle License (along with road tax, gas tax, and a dozen other fees and taxes that come with a vehicle)
Firearm License (along with other miscellaneous fees)
Hunting License (tags and other fees)
Business Licenses and Taxes

I know I am missing a lot of other fees and taxes that government demands for a person to live a normal life in America. These taxes and fees vary widely depending on the State you live in.

If you do a deep dive into your finances, you will discover that your total government fees and taxation with EVERYTHING all included, is close to 50% of your gross income. Half the money you spend in a year is a "contribution" (this is what they call it) to one or another government department.

[Smokin Joe]

I got penalized once for not having 3/4 of my estimated tax paid by the end of the third quarter.

Every cent of that contract work was done in the fourth quarter.