Taxpayer assistance with IRS
HELP!
I filed my taxes on time, with correct estimated payment for IRS convesion in December 2024. I got a letter saying I owe penalty for not paying enough estimated taxes. WRONG! How can I pay estimated tax during Q1-3 on income that wasn’t known until December.
I’ve spent 4+ hours on hold with IRS agents, told to file form 843 for abatement which I did, and now after being dropped off many times being told to file for 2210?
I can’t get anyone via phone to help me. Help? Do you have a contact at IRS via phone or email that is responsive? Its like talking to a brick wall.
Thank you,
Terry Says
OK, let’s approach this from several angles. First, you need to understand the “safe harbor” rules for owing estimated taxes. This article explains it best.
Basically, you are responsible for paying in at least 90% of your current tax liability, or 100% of last year’s taxes, (actually 110% if income over $150k), before your tax return is filed!
That basically “saves” you from a penalty if in the fourth quarter of the year you get extra income. You can pay the estimate on January 15th.
So unless you met the safe harbor rules, the IRS is correct in assessing the penalty. YOu can request an abatement, but unless that is granted, you must pay the penalty.
I don’t know what you meant by “IRS Convesion” in your question. But again, anything that happened in December of last year, must be included in the Jan 15th estimated tax payment unless you met the safe harbor rule.
