About 125,000 notices will be sent to high-income earners, including 25,000 people with income more than $1 million, the tax agency said
This is who the Republican party’s complaints about the IRS are intended to protect.
About 125,000 notices will be sent to high-income earners, including 25,000 people with income more than $1 million, the tax agency said
This is who the Republican party’s complaints about the IRS are intended to protect.
Actual CPA here, you’ll owe an underpayment of estimated tax penalty if you don’t pay in at least the lesser of 90% of current year/100% of prior year (110% if AGI >$150K) tax. The penalty is based on the Federal short term rate and prorated based on amount underpaid and time outstanding (i.e. Q1 is overdue for the whole year but only 1/4 of the underpayment, Q4 is the whole amount but only late by one quarter). When all is said and done, it usually works out to like 2% and we have plenty of clients that would rather hold the cash and pay the penalty because it’s generally cheaper than borrowing, or they figure they can get a greater rate of return by interesting it (depending on their situation/perspective).
If you miss April 15th it goes to credit card rates though (failure to pay penalty, which is very different from underpayment of estimated tax). Don’t do that. Remember: an extension is for time to file, not time to pay.