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They must be contacting people who make a sizeable amount. Since I didn't get a letter I will not file any amendment or pay anything until I am audited or notified to do so. This is the kind of BS that only a dept that has so much power can admit to a mistake and make people pay for it.
What is the amount of interest/penalty you are talking about?
Sorry - bad wording on my part; there is no penalty assessment (yet) - just interest (at about a 5.36% annualized rate).
With the salary from my day job, I earn enough to pay the interest in about two hours time.
I have no problem with paying the additional taxes that I owe, and even some interest on that; but given what the Fed Funds rate has been this past year, 5.36% seems a bit excessive.
I guess it's just the principle of the thing that irks me.
Given that it'd probably mean hours on the phone to even try to contest this, I'm just going to cough up the $; my time is worth more than that.
Sorry - bad wording on my part; there is no penalty assessment (yet) - just interest (at about a 5.36% annualized rate).
With the salary from my day job, I earn enough to pay the interest in about two hours time.
I have no problem with paying the additional taxes that I owe, and even some interest on that; but given what the Fed Funds rate has been this past year, 5.36% seems a bit excessive.
I guess it's just the principle of the thing that irks me.
Given that it'd probably mean hours on the phone to even try to contest this, I'm just going to cough up the $; my time is worth more than that.
Fed funds rate isn't indicative of the IRS underpayment rate. It dropped from 6% in Q2 to 5% in Q3 and stayed there for Q4, which resulted in the rate you calculated.
worked in Taxpayer Advocate's office for 15 years. Penalties can go away but I was never removing interest. Of course, anything can change but the chance of that one changing is close to zero.
Location: Stuck on the East Coast, hoping to head West
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I would at least create an amended return (even if I didn't file it) to double-check the IRS calculations. Most tax software will allow you to create an amended return for free and only charge if you decide to file.
I would at least create an amended return (even if I didn't file it) to double-check the IRS calculations. Most tax software will allow you to create an amended return for free and only charge if you decide to file.
I would at least create an amended return (even if I didn't file it) to double-check the IRS calculations. Most tax software will allow you to create an amended return for free and only charge if you decide to file.
I would just mail the check. Move on.
Actually, yeah - the first thing I did was try to redo my Tax Return...but H&R Block hasn't had an update since April 26th, and has no plans for any further updates (the IRS discovered this error in mid-May - apparently it's not important enough for H&R Block to put out an update).
So - yeah, I just paid it (electronically)...although from looking at the email confirmation I received, I should have waited a few minutes - looks like there's a Nigerian Prince who could have helped me out with this ; )
It may well be owed plus interest but if a business ran this way it would lose customers to the point of changing their ways. No competition is the biggest issue I see with the fed gov. They make rules for us not them. I find the form error highly distasteful as a principle.
Also, being able to collect interest creates a perverse incentive to give inaccurate form instructions. ( The law is still the law though.)
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