Home Page link  

Re: Can someone clarify underpayment penalty for me?

 

Taxes General Forum - Tax professionals meeting place and answers to queries. (Moderated)

 Post an article  get this group's latest topics as an RSS feed add this group's latest topics to your My MSN content add this group's latest topics to your My Yahoo content  add this group's latest topics to your Google content  YahooMyWeb Yahoo!  Google Google  Windows Live Favorites Windows Live  del.icio.us del.icio.us  digg digg  Add to Netscape Netscape
Subject Author Date
Re: Can someone clarify underpayment penalty for me? Dennis Ritchie 10-24-2006
Posted by Dennis Ritchie on October 24, 2006, 7:27 am
Please log in for more thread options
....
> I don't know about NY, but I know state penalties can be
> much worse than federal. The federal "penalties" may be less
> than what you would pay to borrow from a bank .....

States can also be irritating various ways. Last year I
underestimated both NJ and Federal taxes by quite a bit, and
sent fairly large checks by Apr 15. A few weeks ago I got a
certified letter from NJ, wanting $45 in interest/penalty
for underpayment of estimated tax. The "certified" part
meant a trip to the post office.

The letter also said that the $45 had to be paid by
certified or cashier's check. So another trip, this time to
the bank. The bank clerk seemed a little fuddled and said
"do you want to do this? It will cost $15." I said that
that is what the state demands. She talked to her boss and
as a special favor, said they wouldn't charge me this time.

PITA. If they had just sent a simple notification that I
owed $45 I would have saved 2 trips (though lost a story).

Dennis

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Similar ThreadsPosted
Penalty on underpayment? March 19, 2008, 4:57 pm
Do I owe underpayment penalty? April 3, 2008, 1:56 am
Can I avoid underpayment penalty? June 17, 2006, 9:05 pm
Receiving bill for underpayment penalty? April 15, 2008, 4:24 pm
Clarify College Student Dependency March 25, 2008, 2:16 pm
Interest on Underpayment May 25, 2007, 1:41 pm
Re: Interest on Underpayment May 29, 2007, 10:44 pm
Offset underpayment with overpayment for interest March 10, 2008, 2:56 pm
penalties if you discover underpayment of taxes and file amended return April 5, 2008, 1:10 am
Tax Penalty June 5, 2007, 3:20 pm

Contact Us | Privacy Policy
This site is not affiliated with Intuit - makers of Quickbooks and Quicken software
This site is not affiliated with Sage Software - makers of Peachtree accounting software
XML SitemapXML Sitemap