Sup biz how bad does the irs fuck people over who work tons of overtime but dont opt to get more taxes withheld?
bumping for answers
>>1109287
I can't answer your question specifically but,
my brother worked at the IRS and he said, mainly these days the IRS is interested in big fish, people making over $300k a year.
So if you make under $100k a year, unless your taxes are just full of fraudulent shit, I don't think the IRS will ruffle any feathers.
>>1109625
My man this is what i want to hear
>>1109625
>I don't think the IRS will ruffle any feathers.
This is completely wrong. While the audit rates are much higher for HNWI, the IRA doesn't need an audit to charge you penalties and interest for under-withholding. Penalties are calculated automatically by the computer, and you'll be nailed for anything above a de minimus threshold
Underwithholding penalties are difficult to predict.because they accrue and compound daily. Meanwhile, any withholding that you do make is applied to your earliest tax liability on a rolling basis. In my experience, the penalties can be anywhere from 5-15% of the shortfall.
Also, don't forget there are safe harbours. For example if you withhold at least 100% of the prior year's taxes, you'll escape any underwithholding penalty even if your income was substantially higher in the current year.
>>1110032
Praytell, whom do you know/have known at the IRS?
>>1110065
>whom do you know/have known at the IRS?
I don't know anyone at the IRS. But unlike you, I know the difference between an audit and the assessment of a penalty. And unlike you, I've paid underwithholding penalties three times in the last 10 years.
>>1110032
Yeah the 100% of prior year..... I'm going to make a lot more in 2016 than 2015. I pretty much pay myself from the family business. Can I withhold the amount of my 2015 taxes in my first few paychecks of 2016. I'll owe lots of taxes on my 2016 return, but I can earn interest on the money I don't with hold the rest of 2016.
>>1110093
>Can I withhold the amount of my 2015 taxes in my first few paychecks of 2016.
Yes.
Further, you're only required to make supplemental withholding payments on a quarterly basis (April, June, September, and January). If you want to hold on to more of your cash longer, use the quarterly payments dates to "top off" your paycheck withholding to match your 2015 tax liability.
Google 1040-ES and withholding safe harbours.
>Making billions of dollars from one million is EASY! Anyone can do it!
Why do liberals say this meme?
>>1110105
I thought about doing the quarterly payments. My 2015 liability is $16,000. To not worry about the dates, can I withhold $16,000 from my next few paychecks, then just not care the rest of the year about withholding?
>>1109287
Just claim ZERO.... How hard is that? You'll never owe anything and get back $$ every year at tax return time.
>>1110110
>can I withhold $16,000 from my next few paychecks, then just not care the rest of the year about withholding?
Yes. There's no harm in withholding early, except that you'll have less money to do other things (e.g., earn interest).
Or you could pay $4000 on the 15th of April, June, September, and January.
Either way you'll owe the balance of your 2016 taxes on April 15, 2017, but with no penalties or interest.
>>1110120
>get back $$ every year at tax return time
>giving the government an interest free loan
nope.jpg
>>1110120
And give the IRS an interest free loan?
Pass.
>>1110108
>why are liberals retards
they wouldn't be liberals if they weren't retarded.
>>1110077
Lol.
You're a big boy.
>>1111138
Well, I don't know about that. I never set out to under-withhold, but sometimes the timing of my income has been difficult to predict. The penalties are supposed to make it unprofitable to underpay, but really it all depends on what the market does that year.
>>1109287
Withholdings are calculated based on the amount you're paid for that period, not your base salary or anything like that. Assuming you actually have a job, talk to someone in HR and have them explain it to you.
>>1109287
Just pay your fucking taxes. I'm going for my masters in tax right now.
Anyway, who do you guys support for president? If you don't support Bernie, please explain why not.
