Posted on 10/28/2013 3:22:38 PM PDT by Kaslin
I think you will find this interesting
If you don't pay it, it will just accrue penalties and interest.
It's only a matter of time before Soetoro unilaterally decides The IRS can attach your wages.
Time to update those W4’s.
Rush is probably wrong on the level of accrued penalty. I doubt the IRS interest rate on uncollected taxes is 1%. I just googled “irs rate on overdue tax” and found that, in addition to any late penalties, the interest itself is “3% over the short-term Federal rate”, whatever that is taken to be by law.
Thanks- it is indeed!
Low income people that get earned income credit and child credits get a bigger return than just what they have paid. So they end up not paying any income tax. I guess if they have the penalty taken out it’s ok, it was just free money anyway.
Wrong, they can not tax you for it. The only thing they can do is, if you have a refund coming deduct it either from your refund or keep your refund and if you don’t get a refund they can not take money from you
This is a “good thing”. The feedback loop on this behavior will be that more people will up their withholding.
Starve the beast.
I agree. People who get refunds are idiots.
One single mom I know was bummed out because the IRS was grabbing her "refund" to pay back the student loans she defaulted on. My response was "look at it as having your loans paid off for free". She didn't really groove on that concept.
You need to reed the link in the first paragraph
Sorry, make that the second paragraph
I met my wife this way. She came up to me at work to tell me I can’t claim 13 dependents. I told her that I knew it and when the IRS sends me a letter I’ll correct my dependents.
I worked as a contract designer and didn’t work the entire year, but they were withholding as if I did.
Yes, 3% over the Fed. short term rate, but compounded daily...:^)
Don’t you mean they will reduce their withholding by claiming more exemptions? You still have to be careful and do it just right because you can pay a penalty if your withholding has been too low when you file.
As I said on another thread, VAT here we come.
What I find interesting is that in effect the Government is using your money for a year for free.
Now: If everyone corrects their W-4 that is money the Government does not have to spend, and they will have to borrow more for that year increasing the debt.
I am sure the Government does not keep that money in a lockbox but spends it.
Of course I also expect them to go against the law and find a way to make us pay penalties .
Correct. These are the rules “for now” Obama has proven he has no problem rewriting the rules.
I also bet the IRS will change the rules so that all payments made to them will be applied to the obamacare fine/tax first, then your tax payment.
All to make it “fair” ya know.
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