{"id":3191,"date":"2018-01-11T10:54:26","date_gmt":"2018-01-11T15:54:26","guid":{"rendered":"http:\/\/sherylschuff.com\/blog\/?p=3191"},"modified":"2018-01-11T10:54:26","modified_gmt":"2018-01-11T15:54:26","slug":"what-are-the-penalties-for-not-paying-estimated-taxes","status":"publish","type":"post","link":"https:\/\/sherylschuff.com\/blog\/estimated-taxes\/what-are-the-penalties-for-not-paying-estimated-taxes\/","title":{"rendered":"What are the penalties for not paying estimated taxes?"},"content":{"rendered":"

What are the penalties for not paying estimated taxes?<\/span><\/strong><\/p>\n

The IRS reports that 10 million taxpayers were subject to estimated tax penalties in 2015<\/em><\/strong>,an increase of nearly 40% since 2010. <\/span><\/p>\n

Will you be next?<\/span><\/strong><\/p>\n

If you didn\u2019t pay the IRS enough tax through the year<\/strong>, either by payroll (or other) withholding taxes or by making estimated tax payments, you might get charged with an underpayment penalty<\/strong>.<\/span><\/p>\n

The penalty is generally calculated by applying the current Federal interest rate (4Q 2017 was 4%)<\/strong> to the amount of the underpayment for the length of time it wasn\u2019t paid. Rates are adjusted quarterly.
\n<\/span><\/p>\n

You can report the penalty when you file your 1040 (it can be a tricky process) or you can choose to let the IRS figure it and send you a bill (recommended method).<\/span><\/p>\n

In certain situations, penalties won\u2019t get charged <\/span><\/h3>\n

Some of those exceptions are:<\/span><\/h3>\n