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Posted by Duke of Hazard on April 15, 2008, 4:24 pm
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My tax software calculated an estimated underpayment penalty of $77
but did not add it to the total amount due. From the 1040
instructions, pg.77 it says IRS will calculate this for you and send
you a bill. My question is what if I don't receive the bill, can I
assume everything is ok? Because last year I had an estimated
underpayment penalty of $180, but I never received an IRS bill. Bug
in the system or something else?
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<< that may be imposed upon the taxpayer. >>
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Posted by D. Stussy on April 15, 2008, 6:00 pm
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> My tax software calculated an estimated underpayment penalty of $77
> but did not add it to the total amount due. From the 1040
> instructions, pg.77 it says IRS will calculate this for you and send
> you a bill. My question is what if I don't receive the bill, can I
> assume everything is ok? Because last year I had an estimated
> underpayment penalty of $180, but I never received an IRS bill. Bug
> in the system or something else?
If they don't send you a bill within 3 years, they didn't assess the
penalty.
--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by removeps-groups@yahoo.com on April 15, 2008, 6:45 pm
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> My tax software calculated an estimated underpayment penalty of $77
> but did not add it to the total amount due. From the 1040
> instructions, pg.77 it says IRS will calculate this for you and send
> you a bill. My question is what if I don't receive the bill, can I
> assume everything is ok? Because last year I had an estimated
> underpayment penalty of $180, but I never received an IRS bill. Bug
> in the system or something else?
You don't have to worry about it. If you leave the estimated penalty
form blank that means you want the IRS to compute it and send you a
bill. Actually, it will all be done by computer.
Were you in safe harbor last year (meaning your 2006 year withholding
was 110% or 100% of 2005 tax due). Maybe that's why the IRS did not
send you a bill.
--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Taxmanhog on April 15, 2008, 7:40 pm
Please log in for more thread options >"Duke of Hazard" wrote.....
> My tax software calculated .....
> My question is what if I don't receive the bill, can I assume everything
> is ok?
> Because last year I had an estimated underpayment penalty of $180,
> but I never received an IRS bill.
> Bug in the system or something else?
I am assuming you did not file electronically....as stated by others, you
might be in the safe zone, where a penalty may not be due based on the prior
year WH & Prepayments VS tax due.
The reason you have not gotten a bill yet (this year), is that your return
may not have been -fully- processed yet.
If you filed by paper after using your TAX SOFTWARE and there as a modest
tax balance due that you paid in full upon filing, this type of return is
the last to get key punched.
Workload priorities dictate that:
Returns which are balance due and have a partial or no payment attached are
the highest priority for full key punching.
Returns, timely filed with a refund balance, are a priority, as the US
Treasury most pay Interest on delayed refunds, to avoid this the IRS makes a
strong effort to get these returns posted quickly.
Returns with FULL PAYMENT check attached, only the check is cashed, then the
return is set aside for addition data-transcription after the peak workload
season has slowed.
Eventually every class of return is keyed in, if the computer thinks a
penalty is warrented you will get a bill most commonly by the end of
Fall-08, but no later than the statute of limitations 4/15/2011 (1040 for
period ending 12/31/2007 filed by or before 4/15/2008.
--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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