Tax Penalties: How to Prevent or Abate Them!

[KarenL]

You think you’re doing great - taxes withheld from every paycheck or quarterly estimates have been paid timely - and suddenly you see a tax penalty. It can happen to even the most conscientious of people. Life happens and some of those life “happenings” involve your finances as well.

Maybe you received more self-employment income during the last quarter of the year, an unexpected taxable inheritance, a huge bonus from work without enough taxes withheld, emergency withdrawals from a retirement account, or even fewer tax deductions than you expected.

Here’s the help you need to try to reduce or abate your tax penalties, and avoid getting them in the future. 

• Guide to IRS Tax Penalties: How to Avoid or Reduce Them - Types and a great overview!
• How to Deal with Penalties from Tax Non-Payment - Intro to a waiver/abatement. 
• IRS Tax Penalty Abatement and Relief - Great resource with many reasons you might get relief from paying those penalties!
• Why am I getting an underpayment penalty if I'm getting a refund? - The fix if your income is uneven during the year.
• The TurboTax Guide to Avoiding Estimated Tax Penalties - For self-employed, paying enough quarterly taxes is the cure all for underpayment penalties.

BONUS: 

How to Pay Taxes: 10 Ways to Pay Your Tax Bill

If you need tax advice or have questions that aren't answered in the links above, please ask in our Taxes forum that best fits your needs