Don?t Panic: How to Deal with the Estimated Tax Penalty in 2023
The IRS just announced the start of the 2023 filing season as January 29. Sometimes some software companies allow you to file sooner than that…
The post Don?t Panic: How to Deal with the Estimated Tax Penalty in 2023 appeared first on Beauty Cooks Kisses.
Photo Courtesy of Pexels – Kuncheek
The IRS just announced the start of the 2023 filing season as January 29. Sometimes some software companies allow you to file sooner than that but in the end the IRS isn?t counting the processing time sooner than January 29 even if you ?filed? sooner. The returns in those cases are just in a holding pattern to test the system. What your tax software may try to do is assess an estimated tax penalty, but you don’t have to let it do that.
What may happen this year once you submit is that you may see your program wanting to ?assess? a penalty on line 38 of the 1040. Even if you use a preparer to do your taxes these estimated tax penalties may automatically go on the return. And once it?s assessed there at the IRS during filing the penalty can be really hard to remove.
Photo Courtesy of the IRS
Other penalties like ?failure to file? and ?failure to pay? are much easier to remove if you have a good record of compliance. For example, you file on time and pay the tax by the due date. So if you have a year where that doesn?t happen and you miss filing on time or you don?t have the tax paid by the due date and you get a letter saying you owe more money from either of th...
The post Don?t Panic: How to Deal with the Estimated Tax Penalty in 2023 appeared first on Beauty Cooks Kisses.
Photo Courtesy of Pexels – Kuncheek
The IRS just announced the start of the 2023 filing season as January 29. Sometimes some software companies allow you to file sooner than that but in the end the IRS isn?t counting the processing time sooner than January 29 even if you ?filed? sooner. The returns in those cases are just in a holding pattern to test the system. What your tax software may try to do is assess an estimated tax penalty, but you don’t have to let it do that.
What may happen this year once you submit is that you may see your program wanting to ?assess? a penalty on line 38 of the 1040. Even if you use a preparer to do your taxes these estimated tax penalties may automatically go on the return. And once it?s assessed there at the IRS during filing the penalty can be really hard to remove.
Photo Courtesy of the IRS
Other penalties like ?failure to file? and ?failure to pay? are much easier to remove if you have a good record of compliance. For example, you file on time and pay the tax by the due date. So if you have a year where that doesn?t happen and you miss filing on time or you don?t have the tax paid by the due date and you get a letter saying you owe more money from either of th...
Fuente de la noticia:
Nuts 4 Stuff
URL de la Fuente:
http://nuts4stuff.blogspot.com
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