IRS

[Bissawo]

Does the IRS penalize you for not withholding enough taxes out of your paycheck?

[GabriellP · Accepted solution]

Yes, the IRS will assess penalties and/or interest on the underpayment of taxes during the year. If you have self employment income you should make estimated tax payments during the year. If you earn wages from your employer you need to complete Form W-4 to ensure the correct amount is withheld.

The article below goes into more detail about IRS penalties on the underpayment of taxes.

https://www.irs.gov/payments/underpayment-of-estimated-tax-by-individuals-penalty 

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