Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-16-2007, 02:44 AM
Junior Member
 
Join Date: Jan 2007
Posts: 6
Penalties and Interest

Tax Guru,

I heard that some people do not have to pay penalties and interest even though they owe money $10,000’s on their taxes whereas I had to pay penalties and interest on owing a few thousand in taxes?? HELP me understand this rational, TAX GURU??



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 01-16-2007, 09:29 AM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,399
Blog Entries: 3
Dear Amir,
The reason is in general, one rule by IRS to avoid penalties and interest, is if you pay 100% of prior years taxes either through withholding or by making timely estimated tax payments, you would generally not incur penalties and interest on additional amounts owed.

I would recommend that you pay 100% of prior years tax liability and I am sure you would not be assessed penalties and interest on additional liabilities when you file your tax return.

Regards
Tax Guru



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning