Quote:
Originally Posted by somigosaden
It does seem very easy for the IRS to just automatically hit you with a penalty whenever your tax bill is over $1000 when you file yearly, but maybe they don't? I think I've just been super lucky that I've always been diligent enough about keeping my taxable income so low that I've never had a bill over $1,000 before. So I haven't tested it myself as to whether the IRS just lets it slide usually, or ever.
Any comments?
The IRS doesn't let failure to pay slide. However, having a tax bill under $1,000 is not the only way to avoid this penalty: "Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller."
Source:
https://www.irs.gov/businesses/small...stimated-taxes
I've been self-employed for 30 of the last 32 years. When I had a lot of credit card debt, I didn't pay QET because the combined fines and interest from the IRS was significantly less than the interest I was paying on my credit cards—something like 12% vs. 18%. Otherwise, I have paid QET, though usually not more than 100% of my tax bill for the prior year.
I consider myself a normal person.