For taxpayers other than corporations, the overpayment and
underpayment rate is the federal short-term rate plus 3 percentage points.
Partnerships that have an imputed
underpayment arising from such audits have the option to pay assessment at the partnership level or push the assessment out their partners for payment.
However, if the NOPPA sets forth an imputed
underpayment, the partnership may request a modification for adjustments that do not result in an imputed
underpayment.
Partner indemnification of partnership payments: Should the partnership agreement require the partners of the reviewed year to reimburse the partnership for imputed
underpayments made by the partnership in the adjustment year when the partners for the reviewed year and the adjustment year are not the same?
After the audit program's administrative costs,
underpayments paid to providers, and appeal reversals, the Medicare Recovery Audit Program returned approximately $1.
We did not have the resources to track
underpayments manually.
Jana Howard, assistant director of the FTB's legislative services bureau, detailed some 2005 bills affecting the profession, including AB 115, the federal conformity bill; AB 911, the amnesty clean-up bill; and SB 14, which provides an exception to the estimated tax
underpayment penalty that results when a law change retroactively increases a taxpayer's estimated tax payment.
In addition, new Department of Interior regulations issued in response to the discovery of
underpayments will take away the oil companies' ability to determine the royalty payment formula, instead basing it upon market value.
Their home state has recovered billions of dollars in oil
underpayments.
A taxpayer who underpays his or her taxes is required to pay interest on the
underpayment at a rate equal to the Federal short-term interest rate plus three percentage points.
6621(c), the increase in
underpayment rate for large corporate
underpayments ("two percent hot interest") in OBRA '89, increased the differential to three percent for certain corporate
underpayments in excess of $100,000.
Department of Labor investigations revealed $18 million in
underpayments of wages and resulted in $10 million in simple damages alone, collected from employers by the government and paid to employees.
