STGSILVER TAX GROUP
800-778-2741
Open 24 hrs / 7 Days A Week
Real Tax Attorneys For Real Tax Issues

Fast Action. Proven Results.

START WITH A FREE CASE EVALUATION

Penalties due to underreporting of estimated taxes

Most tax reporting that does not comply with IRS regulations will result in penalties. Yet because there are so many forms to fill out and procedures to follow, Michigan taxpayers may not even understand the requirements to follow.

In recent years, the IRS has been penalizing taxpayers for underpayment of estimated taxes. Under federal and state laws, many taxpayers need to make quarterly estimated tax payments. This requirement especially applies for self-employed individuals and employees whose wages are not subject to withholding. It can also apply to salaried and hourly employees who made additional amounts of money not subject to withholding.

While taxpayers receive refunds for overpayment of estimated taxes, those not paying enough will come to the attention of tax authorities. It appears that the IRS is paying much closer attention to estimated tax payments these days. According to IRS data, those taxpayers penalized for underpayment increased by 40 percent from 2010 to 2015.

What some call the "sharing economy" and the "gig economy" may be factoring into this. The sharing economy concerns large amounts of money made through online transactions. The gig economy simply refers to a business culture that relies heavily on independent contractors and temporary workers. In either instance, those participating are often required to pay estimated taxes.

Figuring out what estimated tax payments should be can be difficult. This is especially true for individuals who receive income unevenly during the year. However, there are tax strategies available for such people. As everyone's circumstance is unique, what works best for one individual may not work well for another.

Discussing your circumstances with a tax attorney can prove extremely beneficial. No one wants to face unexpected penalties and an enormous tax bill because they did not report correctly taxes owed.

No Comments

Leave a comment
Comment Information

When you hire us, we can help: you:

  • Obtain emergency relief from IRS actions
  • Stop the IRS from garnishing your wages
  • Prevent levees from being placed on your bank accounts
  • Keep tax payments and penalties from spiraling out of control

Phone Answered 24/7

We are always available to answer your questions and put your mind at ease.

Call us today at
800-778-2741 for a free initial consultation

Competitive Pricing

We offer flat fees that fit your needs and your budget.

Read Our Pricing FAQ

What Past Clients Say About Us

I know I won't be getting those frightening letters anymore thanks to Chad Silver - such a weight off my mind!” - A. Gould, Ohio

Read More Testimonials

A Real History of Success

IRS debt of $682,437, Attorney Silver and his team negotiated the Debt down to zero.

View More Results

You Can Fight The IRS And Win. We Can Help.

No matter where you are in the process, we can help you make the best of your situation. Call us toll free at 800-778-2741 for a free case evaluation.

Get A Free Consultation »
PRACTICING TAX LAW NATIONWIDE

Privacy Policy | Business Development Solutions by FindLaw, a Thomson Reuters business.

Back To Top