4 ms·

The penalty is in interest on the taxes. We had an incorrect entry in our 2010 return and had to pay about 12% in addition to the deficient amount. That would'v

by chime 14y ago

The penalty is in interest on the taxes. We had an incorrect entry in our 2010 return and had to pay about 12% in addition to the deficient amount. That would've been zero if they just verified it in 2011 and told us that there was an error. That is a penalty as far as I am concerned because I didn't get to choose the rate, I didn't get to fight it, and I didn't get to decide when it was due. It was an error on our part and a lack of efficient process on their part caused us to pay extra fees on top of the back-taxes. Whether you call it justified interest or penalty doesn't matter because it still costs me the same.

ajross 14y ago
No. The current IRS interest rate for unpaid tax is 4%. You apparently paid almost three years late, which is getting pretty far afield from "explainable mistake" or "charge you a giant penalty for !=". Hell, if you had "cheated" and put that money in a mutual fund you'd have made a profit.
- Domenic_S 14y ago
  > You apparently paid almost three years late Well that's the thing, the IRS can wait 3 years (or 6 if the error was bad enough), then look at your taxes, and pound you with 4%/year, instead of setting up a job to look at everything right away.
  - ajross 14y ago
    Is that what happened in this case? Again, this is turning into an anti-government diatribe. The original assertion was that the IRS would apply heavy penalties for getting math wrong on the return. No, that's incorrect. Then it was that they'll assess a 12% penalty. No, that's wrong too, it's just a 4% APR. Now your claim is that they're... what, lying in wait? Deliberately maximizing penalties? That's not my experience (our mistake was caught after about 5 months I think). You have a counterexample? (Edit: and reading the replies, the discussion has now slipped yet further afield from the original assertion, and in two directions: on one hand, it's now outrageous -- yet somehow still an argument against the reforms in the linked article -- that some people merely have "bad experiences" with the IRS. On the other the IRS are apparently now highway bandits literally robbing people with threat of force. I give up.)
    - flagnog 14y ago
      how do you like working for the IRS? Seriously - you're arguing FOR the group that takes money from people at gun point?
      - deleted 14y ago
        [deleted]
      - scott_s 14y ago
        Yes. That's how we pay for the public goods that our society relies on.
    - talmand 14y ago
      Since you had a good experience then we are to suppose that everyone has a good experience? I believe there are a good number of stories to show that people have had rather bad experiences with the IRS. Just like you, I'm sure there are stories of people having a good experience with the IRS. You used yourself as an example, he used himself as an example, so I fail to see how he is required to provide another counterexample to you at this point.
  - deleted 14y ago
    [deleted]

by chime 14y ago

ajross 14y ago

No. The current IRS interest rate for unpaid tax is 4%. You apparently paid almost three years late, which is getting pretty far afield from "explainable mistake" or "charge you a giant penalty for !=". Hell, if you had "cheated" and put that money in a mutual fund you'd have made a profit.

Domenic_S 14y ago
> You apparently paid almost three years late Well that's the thing, the IRS can wait 3 years (or 6 if the error was bad enough), then look at your taxes, and pound you with 4%/year, instead of setting up a job to look at everything right away.
- ajross 14y ago
  Is that what happened in this case? Again, this is turning into an anti-government diatribe. The original assertion was that the IRS would apply heavy penalties for getting math wrong on the return. No, that's incorrect. Then it was that they'll assess a 12% penalty. No, that's wrong too, it's just a 4% APR. Now your claim is that they're... what, lying in wait? Deliberately maximizing penalties? That's not my experience (our mistake was caught after about 5 months I think). You have a counterexample? (Edit: and reading the replies, the discussion has now slipped yet further afield from the original assertion, and in two directions: on one hand, it's now outrageous -- yet somehow still an argument against the reforms in the linked article -- that some people merely have "bad experiences" with the IRS. On the other the IRS are apparently now highway bandits literally robbing people with threat of force. I give up.)
  - flagnog 14y ago
    how do you like working for the IRS? Seriously - you're arguing FOR the group that takes money from people at gun point?
    - deleted 14y ago
      [deleted]
    - scott_s 14y ago
      Yes. That's how we pay for the public goods that our society relies on.
  - talmand 14y ago
    Since you had a good experience then we are to suppose that everyone has a good experience? I believe there are a good number of stories to show that people have had rather bad experiences with the IRS. Just like you, I'm sure there are stories of people having a good experience with the IRS. You used yourself as an example, he used himself as an example, so I fail to see how he is required to provide another counterexample to you at this point.
- deleted 14y ago
  [deleted]