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5 Answers

Is there a penalty if you owe $2,000 to the IRS at tax time?

Asked by: Sildenafil plan 386 views YA Discussion

Have no problem with writing this check by April 15th.
(I have saved all year for it).
But some are telling me there is a penalty if this amount is over $ 1,000.

How others found here:

  • penalty for owing over $1000 to IRS?

5 Answers



  1. Wayne Z on Feb 20, 2013 Reply

    There can be a “under withholding” penalty if you owe over $ 1000.

    It may or may not apply depending on your withholding for the year and your withholding relative to your tax liability last year.

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  2. figment_usa on Feb 20, 2013 Reply

    Yes, there is a penalty if you owe more than $ 1,000 at tax time. This is called an estimated tax penalty. However, the penalty does not apply if you paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller.

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  3. Bobbie on Feb 20, 2013 Reply

    YES and you should already know this at this time in your life.
    The number of electronic filing and payment options increases every year, which helps reduce your burden and also improves the timeliness and accuracy of tax returns. When it comes to filing your tax return, however, the law provides that the IRS can assess a penalty if you fail to file, fail to pay or both.

    Here are eight important points about the two different penalties you may face if you file or pay late.

    If you do not file by the deadline, you might face a failure-to-file penalty. If you do not pay by the due date, you could face a failure-to-pay penalty.

    The failure-to-file penalty is generally more than the failure-to-pay penalty. So if you cannot pay all the taxes you owe, you should still file your tax return on time and pay as much as you can, then explore other payment options. The IRS will work with you.

    The penalty for filing late is usually 5 percent of the unpaid taxes for each month or part of a month that a return is late. This penalty will not exceed 25 percent of your unpaid taxes.

    If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $ 135 or 100 percent of the unpaid tax.

    If you do not pay your taxes by the due date, you will generally have to pay a failure-to-pay penalty of ½ of 1 percent of your unpaid taxes for each month or part of a month after the due date that the taxes are not paid. This penalty can be as much as 25 percent of your unpaid taxes.

    If you request an extension of time to file by the tax deadline and you paid at least 90 percent of your actual tax liability by the original due date, you will not face a failure-to-pay penalty if the remaining balance is paid by the extended due date.

    If both the failure-to-file penalty and the failure-to-pay penalty apply in any month, the 5 percent failure-to-file penalty is reduced by the failure-to-pay penalty. However, if you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $ 135 or 100 percent of the unpaid tax.

    You will not have to pay a failure-to-file or failure-to-pay penalty if you can show that you failed to file or pay on time because of reasonable cause and not because of willful neglect.

    http://www.irs.gov/uac/Failure-to-File-or-Pay-Penalties:-Eight-Facts

    http://www.irs.gov/uac/Avoiding-Penalties-and-the-Tax-Gap

    Hope that you find the above enclosed information useful. 02/20/2013

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  4. Steve B on Feb 20, 2013 Reply

    Work through the flow chart on Form 2210 to see if the penalty applies.

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  5. Pascal the Gambler on Feb 20, 2013 Reply

    Yes. Owing over $ 1000 carries a penalty.

    You were supposed to be making quarterly estimated payments throughout the year with 1040ES.

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