Received A Notice From The IRS Today

fmdog44

fmdog44

Well-known Member
Location
Houston, Texas
Never in my life have I set up quarterly payments but yesterday I received a notice of a late fee for not paying it or them for 2019. I paid my taxes in full on July 15, 2019. So after searching everywhere on the website I filled out an Appeals form because you can't talk to a human now. I look forward to total conflicting communications and over all confusing non-facts in the pursuit of resolving this.
 

Oh @fmdog44 i am sooooo with you on this! The IRS mailed my refund but based on some snafu with the post office, they returned it as “undeliverable”. Now can’t get hold of a human on the phone to correct my address or whatever and get it resent. And the website just directs you back to the phone #. Glad I have treasure in heaven that the IRS can’t mess up!! 😆
 
If you do not have a job where they take out withholding, or if you take money out of an IRA where they withhold taxes,you are required to make quarterly payments. I have been doing it since I retired over 10 tears ago.
I use the IRS EFTPS system, where I can schedule the payments quarterly and have it taken from my checking account.
To figure out your estimated taxes, just use the tax you paid last year and divide it up into 4 increments.
 

bowmore I have never had to do this in any prior years and that is why they are wrong. Per their website it is clear this notice I received is not right.
 
fmdog44 said:
bowmore I have never had to do this in any prior years and that is why they are wrong. Per their website it is clear this notice I received is not right.
Click to expand...
I cannot comment more without knowing your situation. Were you working in previous years? Did you earn less than a certain amount, etc.
 
fmdog44 said:
bowmore I have never had to do this in any prior years and that is why they are wrong. Per their website it is clear this notice I received is not right.
Click to expand...
I've never had to file quarterly either.

I think the cutoff is $1,000.00

If you typically owe more than $1,000.00 at tax time I believe the IRS can mandate quarterly estimated payments or impose a penalty of some sort. I might be wrong on the cutoff amount but that is what I recall.

I used to have them withhold taxes in the years that I took a distribution from my IRA at the time the draw was made and owed very little when it came time to file. The IRS actually had their money prior to my tax filing.
 
Search IRS Scams to make sure you are being contacted by the real IRS and not a scammer. They tell on the site what to look for on the documents.
I was getting letters that were from a scammer. Very upsetting when you think they're legit.
They were trying to get me to pay capital gains taxes that had already been paid. I sent info to them proving that I had paid.
They sent another letter declaring the need to settle and send a check for $6K, which included interest and penalties.
After examining the paperwork, it appeared to have been photo copied, not an original print out.
Checking the scam alert website, there was no case number or official seal on it, and there wasn't a contact case worker stated anywhere on the documents. They wanted the payment sent to Kansas City, where an accountant was sent to prison for running a IRS scam recently. I've never sent payments to Missouri.
When I took no further action, they sent a "revised" bill that stated I only owed them a little over $3K! LOL, they were willing to settle for almost half the amount. That's a big tip off that it wasn't real. The real IRS doesn't offer discounts.
Don't give out any of your personal information, either. If it is the IRS, they have all that. You don't want to open yourself to identity theft from a scammer.
Never heard from them again.
 
Aunt Bea is correct. If your Payment Due at the time you file your taxes (total tax owed minus whatever has been previously withheld) will be more than $1000, then you are required to pre-pay that amount in quarterly installments.

Basically, tax is due at the time income is earned and the government doesn't want you to be holding onto too much of "their money".
 
fmdog44 said:
Never in my life have I set up quarterly payments but yesterday I received a notice of a late fee for not paying it or them for 2019. I paid my taxes in full on July 15, 2019. So after searching everywhere on the website I filled out an Appeals form because you can't talk to a human now. I look forward to total conflicting communications and over all confusing non-facts in the pursuit of resolving this.
Click to expand...

Do you do your own taxes or have a preparer do them?
 
Tommy said:
Aunt Bea is correct. If your Payment Due at the time you file your taxes (total tax owed minus whatever has been previously withheld) will be more than $1000, then you are required to pre-pay that amount in quarterly installments.

Basically, tax is due at the time income is earned and the government doesn't want you to be holding onto too much of "their money".
Click to expand...
That has never been the case in prior years so unless this is a new law it does not apply. I always owe 76-8,000 in taxes since retiring over five years ago. I went on the IRS website and I still don't see anything that states I have to do the quarterly payments. I just don't get what has changed in this year.
 
Agreeing with Duster, search for possible scams. Also consider calling your Congressional Rep or Senator’s office. This being an election year they might be willing to help a taxpayer with a problem, or figure out how to get thru to the real IRS for you. Good luck.
 
From the IRS:
If you don’t pay enough tax through withholding and estimated tax payments, you may be charged a penalty. You also may be charged a penalty if your estimated tax payments are late, even if you are due a refund when you file your tax return.


Estimated tax requirements are different for farmers and fishermen. Publication 505, Tax Withholding and Estimated Tax, provides more information about these special estimated tax rules.

Who Must Pay Estimated Tax

Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed.
The people who did your taxes were remiss in not informing you that you owe estimated taxes. I do my taxes with Turbotax, and it automatically generates vouchers for quarterly estimated taxes.
BTW, I volunteer preparing taxes under the AARP program.
 
Who needs to pay quarterly?
Most often, self-employed people, including some persons involved in the sharing economy, need to pay quarterly installments of estimated tax. Similarly, investors, retirees and others – a substantial portion of people whose income is not subject to withholding – often need to make these payments as well. Besides self-employment income, other income generally not subject to withholding includes interest, dividends, capital gains, alimony and rental income.
Because the U.S. federal income tax is a pay-as-you-go tax, taxpayers are required to pay the tax as they earn or receive income during the year. If a taxpayer didn’t pay enough tax during the year, either through withholding or by making estimated tax payments, the taxpayer may normally have to pay a penalty. Recent major tax law changes affect most taxpayers, and while the vast majority are on track to receive a refund, others are finding that they owe on their taxes. Many taxpayers who owe for 2018 may qualify for a waiver of the estimated tax penalty that normally applies.

All of my incomes are subject to withholding tax.
 
fmdog44 said:
Who needs to pay quarterly?
Most often, self-employed people, including some persons involved in the sharing economy, need to pay quarterly installments of estimated tax. Similarly, investors, retirees and others – a substantial portion of people whose income is not subject to withholding – often need to make these payments as well. Besides self-employment income, other income generally not subject to withholding includes interest, dividends, capital gains, alimony and rental income.
Because the U.S. federal income tax is a pay-as-you-go tax, taxpayers are required to pay the tax as they earn or receive income during the year. If a taxpayer didn’t pay enough tax during the year, either through withholding or by making estimated tax payments, the taxpayer may normally have to pay a penalty. Recent major tax law changes affect most taxpayers, and while the vast majority are on track to receive a refund, others are finding that they owe on their taxes. Many taxpayers who owe for 2018 may qualify for a waiver of the estimated tax penalty that normally applies.

All of my incomes are subject to withholding tax.
Click to expand...

I'd be asking whoever you got your income from why they didn't withhold correctly and what they based their rate of withholding on.
 
Aunt Bea said:
Is it possible that all of your incomes combined push you into a higher withholding/tax bracket?
Click to expand...
My income is roughly the same give or take some investment totals. I owe money every year and that is what has me guessing. I'm going to call number tomorrow that will allow me to speak with a person. They take my number and call me rather than wait.
 
fmdog44 said:
Never in my life have I set up quarterly payments but yesterday I received a notice of a late fee for not paying it or them for 2019. I paid my taxes in full on July 15, 2019. So after searching everywhere on the website I filled out an Appeals form because you can't talk to a human now. I look forward to total conflicting communications and over all confusing non-facts in the pursuit of resolving this.
Click to expand...
What a hassle. This could be a government SNAFU. Hopefully you can straighten it out.
 
I think I figured it out this morning and mailed an appeal in this morning. The IRS made a simple mistake in not subtracting taxes taken out. Why they sent me a form for paying quarterly taxes is screwy. Time will tell.
 
Maybe they were busy fantacizing about doing something else. Working for the IRS would be boring.
 

You must log in or register to reply here.

Back
Top