Who should calculate one's tax underpayment penalty?
Is it better to calculate it yourself using your tax software and then e-file? Or is it better to let tax authority (IRS and State Comptroller) calculate and have them send you the bills? It seems like if tax authority does it, then your return will have to be manually reviewed by a person?
- ctc453Lv 44 weeks ago
Pay your damn taxes, Trumptard
- Casey YLv 71 month ago
You do your best to estimate and pay that amount...failure to get that in would result in penalties and interest...
- 1 month ago
Better to do it yourself and pay it right away. By the time the IRS does it, you may owe more in interest, etc,
- JohnLv 51 month ago
A simple yes or no answer would be incorrect for this question. It depends upon your own financial circumstances.
If your income was steady throughout the year, its fine for the IRS to do the computations. If your income was not steady, however, the annualized method might result in a lower penalty. The IRS does not have the information needed to annualize, and that method would result in less penalty if more of your income was made in the second part of the year.
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- StephenWeinsteinLv 71 month ago
If you don't have the money to pay the penalty right away, then it's better to have them calculate it than to calculate it yourself without paying it. If you have the money to pay it immediately, then it's better to calculate it yourself and pay it immediately.
Either way, it won't have to be manually reviewed. If they calculate it, they do it using software; they don't calculate it manually.
- CarVolunteerLv 61 month ago
I let the software do it, although once my then high school age son had a one time large income. The software said he owed a state penalty so I manually corrected it. Aside from that I have never actually had a penalty, since I obey the rules to avoid it.
- NALv 71 month ago
If the excess income was at the end of the year, you may pay less with annualized method which you have to do.
If you just didn't have enough withheld, I would let IRS do it.
- STEVEN FLv 71 month ago
The IRS computer will do EXACXTLY the same math as the tax prep software.
- AlCaponeLv 71 month ago
It's always better to have the IRS calculate the tax. Besides, if you do it yourself, you're almost certainly going to miscalculate and the IRS will end up doing it anyway.