Free Tax Tips

Archive for the ‘IRS Tax Penalties’ Category

Boil Water Advisory on for Parts of Dunbar

Some West Virginia American Water customers in Dunbar will need to boil their water for at least one minute before using.

The IRS Foreign Account Amnesty and RRSPs

Question: is there a tax penalty for underpayment if I sell stock for huge capital gain december 09?

If I day trade in December and have to pay short term capital gain on 500k profit, would i have to pay a tax penalty for underpayment since I did not make estimated quarterly payment to IRS?

Answer: There is a penalty for making sufficient prepayments through withholding or writing a check. The IRS computer assumes you earned income in equal increments during the year unless you tell it otherwise. You will owe a large estimated tax payment on January 15, 2010. You will need to compute the proper amount of the penalty—zero could be the proper amount–on Form 2210 using the annualized method.

Answers to some questions about converting to a Roth IRA

A new law allows high-income investors to convert traditional individual retirement accounts and 401(k) plans to Roth IRAs. Here are answers to questions from USA TODAY readers about the pros and cons of such a conversion.

Tax Consequences of FBAR Filings

To gather information for law enforcement, particularly drugs and organized crime, Congress has long required U.S. persons owning or having signatory authority over foreign financial accounts to file a report with the Department of the Treasury disclosing information about the accounts.

The IRS Offshore Account Amnesty: Why now?

Question: I need to take a distribution from my 401K. What can I expect as tax & penalty?

I need to take a distribution from my 401K due to a financial emergency (unemployment) and need to understand what i will owe the IRS out of that money. I know there is the 10% penalty (can that be waived if one has had to endure unemployment hardship?) and a tax amount. Is the tax going to be per my individual tax rate for is it a fixed amount?

Answer: The tax is whatever your bracket is including the distribution as income, and sorry but no the penalty can’t be waived.

Rebates causing some tax troubles

Many people look forward to receiving a tax return around this time of the year as a little extra cash to put towards larger purchases or projects. However, some people may get a surprise when they file their tax return this year, and they won’t like what they see.

Deductible Versus Nondeductible IRA Contributions

The type of contribution you make affects your tax bill when you withdraw the money or convert the account to a Roth.

How to Get Rid of IRS Penalties – IRS Penalty Abatement