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> Waiting to pay: The 1.1% drop in returns so far may be tied to the fact that the number of returns with balances due – as opposed to a refund paid out – has b
by rdtsc 2y ago
> Waiting to pay: The 1.1% drop in returns so far may be tied to the fact that the number of returns with balances due – as opposed to a refund paid out – has been going up in recent years, said North Carolina-based CPA Jim Buttonow, who worked at the IRS for nearly two decades before going into the private sector.
I can see that. If more people owe money as opposed to getting a refund, there is more incentive to pay later. If US govt owes you money, you handed Uncle Sam a 0% loan, and then it makes sense to file as early as possible.
This one is interesting:
> Refusing to file in protest: Every year, a small number of filers politically object to filing and paying taxes for different reasons. This year is no different.
> Olson said someone recently sent her a letter in the mail containing a copy of an angry letter they had sent to Treasury Secretary Scott Bessent. “It said they didn’t want to file their tax return and pay taxes because they were upset that the Trump administration was trying to breach taxpayer confidentiality,” Olson said.
That's happening with one of my acquaintances. They canvassed for Harris and were quite upset at the loss. As a form of protest they won't be filing their taxes. I don't know what happens then, I am not bold enough to try it myself. Even if a more friendly administration returns after 4 years, will they be willing to amnesty people who took this route. I wouldn't bet on it, and I don't see millions of people going for that option somehow, either.
- refurb 2y ago> If more people owe money as opposed to getting a refund, there is more incentive to pay later. An extension doesnt change when the taxes are due.
- rdtsc 2y agoAh that’s true. Failure to pay is 0.5 percent of the unpaid balance per month. Are there investments that pay more to make it worth it? Maybe it about not wanting to eat stock loss yet having to sell in what looks like a bad market if they plan on using that to pay taxes.
- refurb 2y agoThe current penalty is 7% interest on unpaid amounts. Back when interest rates were low, it was 2-3% which you could easily beat, but 7% is tougher.
- PopAlongKid 2y agoYou are mistakenly conflating interest (which can go up or down every quarter and is charged daily, like an unpaid credit card balance) and penalties (which are a fixed amount per month set by law up to a maximum number of months). Most importantly, both of them apply if there is a failure to pay (FTP) by the original due date.
- deleted 2y ago[deleted]
- refurb 2y agoI am aware there is a difference. Most people would fall under the "underpayment" scenario since taxes are deducted on their W2, which is just interest on the underpayment.
- kotaKat 2y agoEh, it’s a ten year gamble. I’m doing pretty good on it myself. DOGE will ensure they don’t have enough people running around collecting.
- outer_web 2y agoYou're not paying taxes in hopes that Elon will paralyze the IRS?
- treis 2y agoI screwed up my 2023 taxes by accident in an obvious way that netted me a significant extra amount. I haven't heard anything from the IRS in a year at this point. I imagine that at some point I'll get a letter asking for what I owe but I have no idea when. The IRS really sucks at its job and the GP is right that they're about to get a lot worse.