# Received A Notice From The IRS Today



## fmdog44 (Aug 13, 2020)

Never in my life have I set up quarterly payments but yesterday I received a notice of a late fee for not paying it or them for 2019. I paid my taxes in full on July 15, 2019. So after searching everywhere on the website I filled out an Appeals form because you can't talk to a human now. I look forward to total conflicting communications and over all confusing non-facts in the pursuit of resolving this.


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## CinnamonSugar (Aug 13, 2020)

Oh @fmdog44 i am sooooo with you on this!   The IRS mailed my refund but based on some snafu with the post office, they returned it as “undeliverable”.   Now can’t get hold of a human on the phone to correct my address or whatever and get it resent.  And the website just directs you back to the phone #.  Glad I have treasure in heaven that the IRS can’t mess up!!


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## bowmore (Aug 13, 2020)

If you do not have a job where they take out withholding, or if you take money out of an IRA where they withhold taxes,you are required to make quarterly payments. I have been doing it since I retired over 10 tears ago.
I use the IRS EFTPS system, where I can schedule the payments quarterly and have it taken from my checking account.
To figure out your estimated taxes, just use the tax you paid last year and divide it up into 4 increments.


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## fmdog44 (Aug 13, 2020)

bowmore I have never had to do this in any prior years and that is why they are wrong. Per their website it is clear this notice I received is not right.


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## bowmore (Aug 13, 2020)

fmdog44 said:


> bowmore I have never had to do this in any prior years and that is why they are wrong. Per their website it is clear this notice I received is not right.


I cannot comment more without knowing your situation.  Were you working in previous years? Did you earn less than a certain amount, etc.


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## Aneeda72 (Aug 13, 2020)

If only I had some money


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## Aunt Bea (Aug 13, 2020)

fmdog44 said:


> bowmore I have never had to do this in any prior years and that is why they are wrong. Per their website it is clear this notice I received is not right.


I've never had to file quarterly either.

I think the cutoff is $1,000.00

If you typically owe more than $1,000.00 at tax time I believe the IRS can mandate quarterly estimated payments or impose a penalty of some sort.  I might be wrong on the cutoff amount but that is what I recall.

I used to have them withhold taxes in the years that I took a distribution from my IRA at the time the draw was made and owed very little when it came time to file.  The IRS actually had their money prior to my tax filing.


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## Duster (Aug 13, 2020)

Search IRS Scams to make sure you are being contacted by the real IRS and not a scammer.   They tell on the  site what to look for on the documents.   
I was getting letters that were from a scammer. Very upsetting when you think they're legit.  
They were trying to get me to pay capital gains taxes that had already been paid.  I sent info to them proving that I had paid.
They sent another letter declaring the need to settle and send a check for $6K, which included interest and penalties. 
After examining the paperwork, it appeared to have been photo copied, not an original print out. 
Checking the scam alert website, there was no case number or official seal on it, and there wasn't a contact case worker stated anywhere on the documents.  They wanted the payment sent to Kansas City, where an accountant was sent to prison for running a IRS scam recently.  I've never sent payments to Missouri.
When I took no further action, they sent a "revised" bill that stated I only owed them a little over $3K!  LOL, they were willing to settle for almost half the amount. That's a big tip off that it wasn't real.  The real IRS doesn't offer discounts.
Don't give out any of your personal information, either.  If it is the IRS, they have all that.  You don't want to open yourself to identity theft from a scammer.   
Never heard from them again.


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## Tommy (Aug 14, 2020)

Aunt Bea is correct.  If your Payment Due at the time you file your taxes (total tax owed minus whatever has been previously withheld) will be more than $1000, then you are required to pre-pay that amount in quarterly installments.

Basically, tax is due at the time income is earned and the government doesn't want you to be holding onto too much of "their money".


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## jujube (Aug 14, 2020)

My only hassle with the IRS was when I had to convince them I was still alive.


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## Butterfly (Aug 14, 2020)

jujube said:


> My only hassle with the IRS was when I had to convince them I was still alive.



I think I would have been tempted to just let them go on thinking I was dead.


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## Butterfly (Aug 14, 2020)

fmdog44 said:


> Never in my life have I set up quarterly payments but yesterday I received a notice of a late fee for not paying it or them for 2019. I paid my taxes in full on July 15, 2019. So after searching everywhere on the website I filled out an Appeals form because you can't talk to a human now. I look forward to total conflicting communications and over all confusing non-facts in the pursuit of resolving this.



Do you do your own taxes or have a preparer do them?


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## fmdog44 (Aug 14, 2020)

Tommy said:


> Aunt Bea is correct.  If your Payment Due at the time you file your taxes (total tax owed minus whatever has been previously withheld) will be more than $1000, then you are required to pre-pay that amount in quarterly installments.
> 
> Basically, tax is due at the time income is earned and the government doesn't want you to be holding onto too much of "their money".


That has never been the case in prior years so unless this is a new law it does not apply. I always owe 76-8,000 in taxes since retiring over five years ago. I went on the IRS website and I still don't see anything that states I have to do the quarterly payments. I just don't get what has changed in this year.


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## fmdog44 (Aug 14, 2020)

Butterfly said:


> Do you do your own taxes or have a preparer do them?


I have Jackson Hewitt and I called them and they are stumped as well. She said I have to set it up if I choose to pay quarterly.


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## Geezerette (Aug 14, 2020)

Agreeing with Duster, search for possible scams. Also consider calling your Congressional Rep or Senator’s office. This being an election year they might be willing to help a taxpayer with a problem, or figure out how to get thru to the real IRS for you. Good luck.


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## jujube (Aug 14, 2020)

Butterfly said:


> I think I would have been tempted to just let them go on thinking I was dead.


It would have been  cheaper, but I probably would have ended up in the pen for tax evasion.


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## bowmore (Aug 14, 2020)

*From the IRS:*
If you don’t pay enough tax through withholding and *estimated tax payments, you may be charged a penalty.* You also may be charged a penalty if your estimated tax payments are late, even if you are due a refund when you file your tax return.


Estimated tax requirements are different for farmers and fishermen. Publication 505, Tax Withholding and Estimated Tax, provides more information about these special estimated tax rules.

*Who Must Pay Estimated Tax*

*Individuals,* including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if *they expect to owe tax of $1,000 *or more when their return is filed.
The people who did your taxes were remiss in not informing you that you owe estimated taxes. I do my taxes with Turbotax, and it automatically generates vouchers for quarterly estimated taxes.
BTW, I volunteer preparing taxes under the AARP program.


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## fmdog44 (Aug 15, 2020)

*Who needs to pay quarterly?*
Most often, self-employed people, including some persons involved in the sharing economy, need to pay quarterly installments of estimated tax. Similarly, investors, retirees and others – a substantial portion of people whose income *is not subject to withholding* – _often_ need to make these payments as well. Besides self-employment income, other income generally not subject to withholding includes interest, dividends, capital gains, alimony and rental income.
Because the U.S. federal income tax is a pay-as-you-go tax, taxpayers are required to pay the tax as they earn or receive income during the year. If a taxpayer didn’t pay enough tax during the year, either through withholding or by making estimated tax payments, the taxpayer may normally have to pay a penalty. Recent major tax law changes affect most taxpayers, and while the vast majority are on track to receive a refund, others are finding that they owe on their taxes. Many taxpayers who owe for 2018 may qualify for a waiver of the estimated tax penalty that normally applies.

All of my incomes are subject to withholding tax.


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## Butterfly (Aug 15, 2020)

fmdog44 said:


> *Who needs to pay quarterly?*
> Most often, self-employed people, including some persons involved in the sharing economy, need to pay quarterly installments of estimated tax. Similarly, investors, retirees and others – a substantial portion of people whose income *is not subject to withholding* – _often_ need to make these payments as well. Besides self-employment income, other income generally not subject to withholding includes interest, dividends, capital gains, alimony and rental income.
> Because the U.S. federal income tax is a pay-as-you-go tax, taxpayers are required to pay the tax as they earn or receive income during the year. If a taxpayer didn’t pay enough tax during the year, either through withholding or by making estimated tax payments, the taxpayer may normally have to pay a penalty. Recent major tax law changes affect most taxpayers, and while the vast majority are on track to receive a refund, others are finding that they owe on their taxes. Many taxpayers who owe for 2018 may qualify for a waiver of the estimated tax penalty that normally applies.
> 
> All of my incomes are subject to withholding tax.



I'd be asking whoever you got your income from why they didn't withhold correctly and what they based their rate of withholding on.


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## Aunt Bea (Aug 16, 2020)

fmdog44 said:


> *All of my incomes are subject to withholding tax.*


Is it possible that all of your incomes combined push you into a higher withholding/tax bracket?


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## deesierra (Aug 16, 2020)

What a hassle!! Good luck.


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## fmdog44 (Aug 16, 2020)

Aunt Bea said:


> Is it possible that all of your incomes combined push you into a higher withholding/tax bracket?


My income is roughly the same give or take some investment totals. I owe money every year and that is what has me guessing. I'm going to call number tomorrow that will allow me to speak with a person. They take my number and call me rather than wait.


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## Phoenix (Aug 17, 2020)

fmdog44 said:


> Never in my life have I set up quarterly payments but yesterday I received a notice of a late fee for not paying it or them for 2019. I paid my taxes in full on July 15, 2019. So after searching everywhere on the website I filled out an Appeals form because you can't talk to a human now. I look forward to total conflicting communications and over all confusing non-facts in the pursuit of resolving this.


What a hassle.  This could be a government SNAFU.  Hopefully you can straighten it out.


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## fmdog44 (Aug 17, 2020)

I think I figured it out this morning and mailed an appeal in this morning. The IRS made a simple mistake in not subtracting taxes taken out. Why they sent me a form for paying quarterly taxes is screwy. Time will tell.


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## Phoenix (Aug 17, 2020)

Maybe they were busy fantacizing about doing something else.  Working for the IRS would be boring.


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## Della (Aug 18, 2020)

We had to pay a penalty one year for not paying quarterly.  We had moved some money from one type of Certificate of Deposit to  another and all the dividends paid at once giving us an unexpected lump of money in our savings account.  I asked the IRS how we were supposed to know about this quarterly thing and they said, well you pay the penalty the first time and then you know.


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## Ellen Marie (Aug 27, 2020)

According to the CARES Act, fees should have been exempted.   I would suggest that your response was an automatically generated letter from the IRS computer.   There should be a number on the top right of the letter that provides a telephone number that would be answered fairly promptly.


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## Ellen Marie (Aug 27, 2020)

May 28, 2020

Estimated tax payments normally due April 15 and June 15 are now postponed to July 15.

If you or your business has a quarterly estimated tax payment due on or after April 1, 2020, and before July 15, 2020, you now have until July 15 to make your payment, without penalty.

For more information visit the coronavirus page of IRS.gov.


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