Posted on 06/23/2022 4:05:36 PM PDT by Enterprise
The Supreme Court agreed on June 21 to hear an appeal from a Romanian-American businessman who was fined $50,000 for failing to file tax forms on time, but whose penalty ballooned to $2.72 million when an appeals court ruled the fine should be imposed based on the number of bank accounts he held, instead of on the number of forms he failed to file.
The Biden administration, which wants to beef up enforcement efforts by the IRS, favors the larger penalty and had asked the high court to refuse to take the case.
The case is Bittner v. United States of America (court file 21-1195) an appeal from the U.S. Court of Appeals for the 5th Circuit.
(Excerpt) Read more at theepochtimes.com ...
This Supreme Court is going to play out. Just watch.
This Romainan business man can just consider it a gift to Zelensky.
oops, with 10% for the big guy of course.
time to slap the hell out of Biden again!
hehe
There were some problems with my withholding in 2019 and didn’t want to liquidate a lot of high earning assets when I filed, I plowed a ton into the stock market on the pretty much exact right day.
So, I upped my withholding to an additional $300 every other week, and had a nice refund in 2020 to more than off-set the 2019 shortfall. But the IRS hasn’t processed my 2020, much less my 2021. They’ve had that money, almost since I filed my 2019 (probably 2 months would have put us straight) but I’m sure I’ll be penalized until they process 2020 and 2021.
A-holes.
This is what a failed state does.
“on time”
You have 3 years to file after the due date. The two penalties are a percent of the tax owed. If you owe ZERO, it is a percentage of ZERO. Typically you”ll get a 1015 asking for the the form. Then 2 cycles later you’ll get an 1018. That one you don’t want to ignore. The IRS workerbee manual is online so anyone can see the precise steps for themselves. Very important to know your enemy’s battleplan.
Those later returns refunds won’t help the earlier one.
If you owed tax on 2019 your overpayment from 2020 should offset to the 2019 balance, but should be credited as of the due date of the 2020 return (04/15/2021). It won’t cancel out the 2019 interest and penalties but it will help. Sounds like you filed paper returns rather than filing electronically. It’s a national disgrace the IRS can’t process paper returns with anything approaching efficiency now.
Thanks
Thanks for the insight! I'm not good with this type of stuff, and it wasn't until early this year that I hired a tax accountant to get this all straightened out. But, when dealing with the GOV. expect the worst and you'll only be disappointed most of the time.
As I age, this stuff becomes more confusing to me, so trying to decipher the IRS manual is going to be a tough order. I did hire a tax accountant, and she suggested (after looking through all my documentation) that I should just hold out and let them take the balance due out of the 2020 and 2021, because the penalties wouldn’t be that much.
But you’re right, the IRS is the ENEMY and they will screw you eight ways from Sunday.
My daughter filed 1040-X in June 2021 for a refund.
It took IRS exactly 12 months to send her the funds.
It was a simple 1040-X, she had simply forgotten to use her simple IRA contribution to reduce her tax due.
The problem with that strato is the penalties and interest will keep adding up.
Most likely.
If there's one thing I've learned, you don't have a fair fight against our "Representative Gov". I figure with the inflation today, I'll pay it off with lesser valued dollars.
"The Internal Revenue Service today announced that interest rates will increase for the calendar quarter beginning April 1, 2022. The rates will be: 4% for underpayments;"
"Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points."
So expect the next penalty rate to be 4.75% or higher.
I did not know that. This is obviously in your wheel house and I appreciate your sharing your expertise with another FReeper, Gratis!
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