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3
votes
1answer
61 views

Where is payment for failure-to-file and failure-to-pay penalties included on Form 1040?

Form 1040 line 79 is for "estimated tax penalty", but my understanding is that this is for 'penalty for not paying estimated tax', not 'the estimated amount for all tax penalties'. If this is the case,...
4
votes
1answer
220 views

How far does the IRS usually go when they uncover unreported income?

I have had a Google AdSense account for a while. In 2013, Google started requiring to fill out tax information. I was an idiot and decided to claim that I lived in another country and that I had no ...
4
votes
2answers
122 views

Roth-IRA withdrawal penalty: 10% of what?

Early non-exempt withdrawal from a Roth-IRA results in a "10% penalty". A 10% penalty on what amount: The amount withdrawn? The remaining balance of the Roth IRA? Both? Insight appreciated
3
votes
5answers
385 views

Under what circumstance will the IRS charge you a late-payment penalty for taxes?

IRS Topic 301 states You will owe interest on any past-due tax and you may be subject to a late-payment penalty if the payment of tax is not made by the original due date of your return. The ...
1
vote
1answer
27 views

Is Return of Excess from an IRA Subject to Penalty?

I made a deposit into a Traditional IRA a few days ago, intending to do a Back-Door Roth. As it turns out, it wasn't a good idea (see Any Downside to Backdoor Roth?). In filling out the forms to do ...
1
vote
0answers
50 views

401K non resident alien -early withdrawl penalty 10%

I have a 401K with over 100 k in it . My question is if my former employer's 401k plan does not withhold the 10 % early withdrawal penalty, will I need to pay this with a US tax return ? after or ...
2
votes
1answer
66 views

Roth 401k withdrawal rules

If your employer matches your contribution on a roth 401k account are you typically able to withdraw the money you deposited + the employer match from your account (I know there are penalties & ...
0
votes
1answer
126 views

Must I go on a quarterly payment plan if I owe the IRS a lot?

Context: I've heard from a couple people that if you owe a significant amount of taxes to the IRS (say several thousand dollars) at tax time, then the IRS will require you to start paying future taxes ...
7
votes
1answer
157 views

How Does The IRS Structure Payment Plans If I Owe Subjectively High Taxes?

During the 2015 tax year I became legally separated. During the separation my ex-wife did not agree to a QDRO when cashing out her equity from jointly owned property. The cash out was mandated by ...
2
votes
2answers
68 views

Stocks in India, what is the best way to get money to US

I am in US for last 10 years. I bought few stocks in India when I used to work there. I never operated the stock (demat) account (never sold or bought) since I moved here never reported them on my ...
2
votes
2answers
89 views

Can I deduct penalties for late IRS filings?

I was young and naive. I hadn't filed my 2013 corporation return (S status), and only had incorporated on Dec 16 of that year. I hadn't even begun operations. Then I discovered annual corporate tax ...
0
votes
1answer
466 views

Penalty for cashing out HSA on permanently leaving the country? [duplicate]

I understand that if you want to cash out your HSA you are expected to pay tax and some penalty on that money. The tax part I understand. But what is this penalty exactly and how much would it be? And ...
2
votes
0answers
50 views

Using Roth and Rollover IRA for home down payment

I'm not able to find anything on this. I'm planning to withdraw $5000 from my Roth IRA and $5000 from my Rollover IRA for a home down payment. That's the $10k max to avoid a 10% penalty. But does ...
3
votes
1answer
296 views

Will a Roth 401k rolling over to a Roth IRA allow the money to become penalty-free at withdrawl?

I'm aware that a Roth 401k and a Roth IRA are funded with pre-tax amounts, and no taxes are incurred upon withdrawal. However, I have stumbled upon a few articles that state a 10% penalty early ...
2
votes
1answer
139 views

Individual Client or Customer fining or charging a Company a penalty fee

What's the primary factor keeping a consumer from handing out fees as liberally as corporations or small businesses do? Can an individual, or more appropriately, what keeps an individual from being ...
10
votes
1answer
2k views

401(k) forfeited and check issued. What can I do to avoid penalty?

Recently, I checked the website of the last 401(k) plan that I contributed. I found that the account was "forfeited", which I assume it means that it was closed due to not being an employee of the ...
-2
votes
2answers
2k views

How does the “Rule of 55” work for avoiding early 401k withdrawal penalties?

How does the "Rule of 55" work for avoiding early withdrawal penalties from a 401k? What are the conditions around using the "Rule of 55"? Is it practical to use this rule?
15
votes
2answers
2k views

Estimated Taxes after surge in income

Last year my self-employment income was $300k and I paid about $80k in federal taxes. This year, in the first quarter, all of my business dried up and I had $0 in income. Turbo tax was advising me ...
1
vote
3answers
328 views

New 401(k) account, barely funded: can I withdraw penalty-free?

I established a new 401(k) account with my previous employer. I made a total of $600 in contributions ($100 x 6). I don't want to keep this 401(k). First, 401(k) is not my preferred investment ...
0
votes
0answers
125 views

Are HMRC (UK tax inspectors) required to give specific notice of late filing penalties?

I'm in a difficult position with respect to HMRC. My story: just before the deadline for submitting an income tax return for the tax year 2013-2014, this January (2015) I got a letter from HMRC ...
1
vote
2answers
190 views

Roth 401(k) pre-mature withdrawal: Is company match subject to tax/penalty?

Question on 10% penalty and tax on earnings for a Roth plan: For example: My contribution is $10k, with company match of $10k as well. Total earnings of ~$2k. Will I have to pay 10% penalty and tax ...
3
votes
1answer
163 views

Cash Out IRA to Pay Off Debt

I have an IRA that I haven't paid into for over 10 years. I also have a State retirement plan that I have paid into for 10 years and will continue until I retire. Besides the penalties, any reason I ...
1
vote
1answer
307 views

Does the CRA charge any penalty if you file a wrong tax return?

If you misreport a number on your tax return, will the CRA just charge you the extra money that you owe them? Or will they actually 'punish' you by charging hefty fines and penalty , and slap charges ...
3
votes
2answers
132 views

Can an early withdrawal from a Traditional IRA be done in two parts?

Let's assume that we've already determined an early withdrawal from a Traditional IRA will be taken and that it does not qualify for any of the tax-free conditions. I am aware of the lost opportunity ...
4
votes
1answer
503 views

What is the penalty for having an HSA and Medicare?

If I open a HSA my employer will contribute $1000 yearly, but I am not supposed to contribute to an HSA because I have Medicare Part A. What is the penalty for contributing to an HSA when you have ...
7
votes
2answers
2k views

Arguments on the “unconstitutionality” of income tax: What acts, etc. of Congress require payment of income tax?

I've heard that while the 16th Amendment gave the U.S. Congress the authority to enact laws for the application of an income tax on US citizens, but I've also heard that there is currently no law on ...
0
votes
1answer
2k views

Calculating underpayment penalty for Maryland state taxes

I am trying to determine if I am going to owe an underpayment penalty on my Maryland state taxes for tax year 2014. Form 4502UP (http://forms.marylandtaxes.com/current_forms/502up.pdf) states that ...
0
votes
2answers
524 views

Short Term Capital Gains tax vs. IRA Withdrawal Tax w/o Quarterly Est. Taxes

So I had to pull funds from my IRA account earlier this year. I had taxes withheld and realize there is a penalty, however, my question is two part: with penalties and taxes for early withdrawal, I am ...
0
votes
1answer
187 views

For Federal Crimes, where does the money collected from penalties go? [closed]

Today it was announced that Hewlett-Packard, HP, has to pay a $108 million dollar penalty to the Department of Justice, DoJ, for pleading guilty to bribery and money laundering. My question is, where ...
2
votes
1answer
175 views

What is the penalty for contributing to a Roth 401k when my AGI is over the limit?

Specifically, my wife has a Roth 401k and I have a traditional 401k; we married in the middle of last year, and our combined AGI for last year is well above the limit for contributions to a Roth ...
7
votes
3answers
2k views

U.S. citizen living abroad: How do I declare my income and file for taxes if I've been delinquent in filing?

I'm 26 and have lived outside the U.S. all my life. I never filed a U.S. income tax return. I know nothing about doing my taxes, and would like to file for the years that I neglected to before the ...
1
vote
1answer
41 views

Getting out from Wireless carrier contract without a penalty

I recently got a notification from T-Mobile saying that their agreement ended with my employer and they will no longer provide 15% discount to monthly service charges. Can I get out of my 2 year ...
8
votes
2answers
2k views

The five-year rule and backdoor Roth IRA conversions with non-deductible contributions

I have a Roth IRA that was opened and initially funded more than five years ago. Now that I'm earning too much money to make regular contributions, I'd like to further fund this account through a ...
5
votes
2answers
244 views

If I haven't filed in 2 years, does year 1's refund automatically apply to year 2 and prevent penalty?

I haven't filed in 2 years. But the first year I was owed a refund; let's say $1k. Year 2 I under paid. Let's say it was by exactly $1k. Will the unclaimed year 1 refund automatically cover the year ...
1
vote
2answers
184 views

What is the amount of extra interest I have to pay along with my tax due?

My total tax payable is 60803 for the financial year 2012-2013. But, TDS deducted till 31st 2013 is 50822, so I have to pay the tax due of 9981. What is the exact amount I have to pay? Is there ...
1
vote
2answers
187 views

Is it possible to take advantage of exceptions to early withdrawal penalties on a 401(k)?

As I understand, in addition to having to pay income tax on gains, early withdrawals from a 401(k) also incur a penalty. But, I also heard that there are exceptions to the penalty, e.g. if paying ...
4
votes
3answers
2k views

Employer overpaid 401k - what's my liability?

My employer overpaid into my 401k account (ie: deposited an extra paycheck's worth of money into the account). I notified the HR/payroll person of the mistake, and they said they'd "look into it", ...
1
vote
1answer
864 views

Penalties for cashing out on a SIMPLE IRA early

I want to know what are the penalties that an individual will face if they withdraw on a SIMPLE IRA outside of a hardship distribution? (Additionally) I noticed in another post someone mentioned a '2-...
4
votes
1answer
87 views

Can a loss in one Roth IRA make up for a gain in another when trying to withdraw early penalty-free?

I have a Roth IRA account with $9,500 current value ($500 less than I invested in it). My wife has a Roth IRA account with $5,500 current value ($500 more than she invested in it). We pay our taxes ...
4
votes
2answers
478 views

Formula to decide when to break a Certificate of Deposit (CD)?

I'm trying to create a certificate of deposit (CD) comparison tool and have been working on a formula to compare a CD with a higher interest rate to a CD I might own with a penalty period. I believe ...
15
votes
2answers
3k views

Accidentally cashed out 401k instead of rolling it into an IRA. What do i do?

I've recently changed jobs (past two weeks) from an employer with a 401k to a new employer who does not offer any retirement accounts. I made a huge mistake and accidentally cashed out my 401k ...
4
votes
2answers
161 views

Accidentally opened a year term CD account, then realized I need the money sooner. What to do?

I opened a year term CD account two business days ago and just found out that I would need that money this year. I searched around the web and it looks like there is a federal law saying that a bank ...
3
votes
2answers
201 views

IRA withdrawal tax and penalties: Any additional fees or taxes for not paying up front?

I just withdraw everything from my IRA: about $68K, and I'm willing to pay taxes and penalties on that, because I'm unable to invest capital effectively (I don't wish to invest in US stocks or dollar ...
1
vote
1answer
111 views

TFSA over-contributions: How would the penalty apply in this scenario?

If my TFSA account is maxed and I want to transfer 5000 shares at $1.00 on August 2nd, 2011, and I was to sell the shares at $2.00 on January 3rd, 2012, would I have to pay tax on the gain plus 1% per ...
3
votes
3answers
217 views

Will I incur late fees, now that I am making infrequent/late payments on my auto loan?

I have been unemployed for 6 months now. I have been making infrequent payments on my auto loan. I am suppose to be paid up in May of 2012. My lien holder never sends me my balances or a bill, so I ...
5
votes
1answer
197 views

If you owe tax, how does the IRS failure-to-file penalty work?

If you owe tax, how does the IRS failure-to-file penalty work?
1
vote
1answer
285 views

How does the 1% penalty on TFSA transfers work?

The maximum annual contribution limit to a TFSA is $5000 per year. This makes it a good emergency fund vehicle. If I: transfer money out before the new $5000 contribution credit starts for a new ...