Withholdings: If quarterly tax payments and salary withholdings still leave a sizable tax burden due on April 17, then you're literally throwing money away in the form of underpayment penalties
Attached to it were mandatory accuracy-related and underpayment penalties
, as well as payment-failure and file-failure penalties, which often amounted to 50 per cent of the tax that was owed.
539 (2011), the IRS assessed substantial underpayment penalties
on two commonly controlled corporations that failed to self-assess the personal holding company tax.
Thus, if the employer's taxes were underpaid because employment taxes were omitted, the IRS may assess underpayment penalties
TEI's overarching concerns with these regulations are the potential they pose for (1) substantially increasing compliance costs without a commensurate improvement in the quality of information supplied to the IRS, (2) increasing uncertainty for taxpayers, and (3) heightening the risk of underpayment penalties
for foot faults relating to inadvertent failures to file disclosure statements for reportable transactions.
Because the estate had not used a qualified appraiser, relying instead only on the buy-sell agreement, they were liable for underpayment penalties
What about underpayment penalties
if taxpayers do not satisfy the safe-harbor rules?
Be sure you're properly paid up through withholding (usually the best way) or estimated payments to avoid underpayment penalties
evaluate your potential exposure to underpayment penalties
Adjusting these payments now will avoid underpayment penalties
In addition, the net interest paid is treated as an income tax, and if not paid timely, is subject to underpayment penalties
The supervisor was very understanding and had the CPA write a letter admitting the mistake, and stating under penalties of perjury that the taxpayer may be subject to underpayment penalties