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IRS penalty for underpayments soars to 8% — nearly triple what it was 2 years ago
Nypost ^ | 12/03/2023 | JESSE O’NEILL

Posted on 12/03/2023 12:21:35 PM PST by ChicagoConservative27

The Internal Revenue Service penalty for tax underpayments has nearly tripled since 2021, putting gig economy workers and consultants at the largest risk of having to cough up big bucks to Uncle Sam.

As of Oct. 1, the IRS will now charge 8% interest on estimated tax underpayments, up from 3% two years ago, according to The Wall Street Journal.

(Excerpt) Read more at nypost.com ...


TOPICS: Business/Economy; Culture/Society; Front Page News; Government; News/Current Events
KEYWORDS: interest; irs; irspenalty; marxisttyranny; penalty; triple; underpayments
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Got to keep those goodies coming to the illegal aliens...
1 posted on 12/03/2023 12:21:35 PM PST by ChicagoConservative27
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To: Joe Brower

bfl


2 posted on 12/03/2023 12:24:41 PM PST by Joe Brower ("Might we not live in a nobler dream than this?" -- John Ruskin)
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To: ChicagoConservative27

Bidenflation. Now we know why they hired those extra 87,000 armed agents who have no problem firing on Americans.


3 posted on 12/03/2023 12:27:47 PM PST by BipolarBob (Yes officer, I saw the speed limit sign. I just didn't see you.)
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To: ChicagoConservative27

More weapons in their arsenal against the small business private sector in the USA. Dems and communists seem to have very similar goals.


4 posted on 12/03/2023 12:29:52 PM PST by Freee-dame
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To: Freee-dame

When the food runs out will the IRS still be able to eat?


5 posted on 12/03/2023 12:33:47 PM PST by Roman_War_Criminal (Jesus + Something = Nothing ; Jesus + Nothing = Everything )
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To: ChicagoConservative27

The increase is based on what law?


6 posted on 12/03/2023 12:34:47 PM PST by sauropod (The obedient always think of themselves as virtuous rather than cowardly.)
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To: sauropod

Code to collect money based on gov’t caused and measured inflation.


7 posted on 12/03/2023 12:38:36 PM PST by Paladin2
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To: sauropod

Exactly, where in the constitution does it say they’re permitted to do this?!


8 posted on 12/03/2023 12:49:34 PM PST by No name given (Anonymous is who you’ll know me as)
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To: sauropod
The IRS establishes interest rates every quarter based on prevailing rates in the market (prime, U.S. Treasuries, etc.).

If you lend a large sum of money (I think more than $10,000) to a family member, you must charge the IRS minimum rate of interest to avoid having your loan categorized as a gift and taxed accordingly.

9 posted on 12/03/2023 12:52:16 PM PST by Alberta's Child (If something in government doesn’t make sense, you can be sure it makes dollars.)
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To: sauropod

There’s probably a statute in the Treasury Rules that says they can charge whatever they want. Customary rates are about 9% so….


10 posted on 12/03/2023 12:52:37 PM PST by griswold3 (Truth, Beauty and Goodness. ])
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To: ChicagoConservative27

I pay my taxes once a year and last year I was penalized for underpayments I think they’re trying to get me to shift to quarterly payments which I really do not want to do, I’m very busy and I don’t have time every 3 months to sit out and do taxes... that said if they’re trying to force people into paying quarterly they’re also going to try to force people into underpayments so that they get a little extra on the side with that new 8%.


11 posted on 12/03/2023 1:03:43 PM PST by Clutch Martin ("The trouble ain't that there is too many fools, but that the lightning ain't distributed right." )
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To: ChicagoConservative27

87,000 new agents must be justified by bringing in higher revenues.


12 posted on 12/03/2023 1:04:03 PM PST by fella ("As it was before Noah so shall it be again," )
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Penalty + Interest


13 posted on 12/03/2023 1:05:49 PM PST by Gene Eric (Don't be a statist!)
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To: Alberta's Child

2024 Gift Tax Exclusion is $17,000.


14 posted on 12/03/2023 1:37:12 PM PST by DFG
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To: ChicagoConservative27

Geez, what a bunch of azzholes.


15 posted on 12/03/2023 1:37:57 PM PST by Tolerance Sucks Rocks (FBI out of Florida!)
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To: All

I don’t suppose they are paying 8% interest if you overpay.


16 posted on 12/03/2023 1:48:02 PM PST by LegendHasIt
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To: LegendHasIt

I always laugh when people brag about the tax refund they got.

All they did was give the government an interest-free loan. Suckers!


17 posted on 12/03/2023 1:50:23 PM PST by dfwgator (Endut! Hoch Hech!)
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To: ChicagoConservative27

All you deadbeat Americans need to get on the ball and cough it up!
The illegals need things...NOW!


18 posted on 12/03/2023 1:51:39 PM PST by skimbell
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To: ChicagoConservative27

There was a time in my life that as a “proud American”, I bought into the idea that it was patriotic to be paying “my fair share”. Those that didn’t were terrible, and were the reason that other people, such as myself, had to pick up the slack for their failures.
Those days are LONG GONE, especially with the current communist administration.
Today, I commend everyone and anyone that can beat these evil pricks out of a nickel, either legally or illegally and get away with it. More power to ya!!!
Wonder how much old Humper Biden has paid in taxes on all his ill-gotten gains over the years? /s


19 posted on 12/03/2023 1:54:07 PM PST by lgjhn23 ("On the 8th day, Satan created the progressive liberal to destroy all the good that God created...")
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To: LegendHasIt

True. And I would call it loan sharking as you can’t even get 1% from most banks.


20 posted on 12/03/2023 2:04:55 PM PST by Revel
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