[QUOTE=RJKUgly]
Ok, that’s interesting. Do you happen to know if this has changed in the last 20 years or so? I got tagged by the IRS with a fine (about $100 IIRC) for not filing in a year when I had a refund coming. It has been about 20 years, however.
[/QUOTE]
It’s been the same since 1984, at least. You may be confusing the IRS with your State aganecy, a common error.
[QUOTE=RJKUgly]
Oh, I forgot to add, I was told the penalty was calculated on the tax amount, not the amount you owed after subtracting your withholding. So my FIT that year had been $3500 or so, and I had a couple of hundred more than that withheld. I was told specifically that I could be fined based on the $3500. Your cite seems to say just the opposite, so now I wonder if that agent was lying to me, wrong, or maybe just confused about what I owed after all the calculations that had gone on.
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He was wrong, or you misunderstood.
hajario; there was no penalty like that back in 1984 either. Again, you might have been threatened with the $500 False W-4 penalty, which my Bro sez was heavily enforced in and about 1984.
[QUOTE=DrDeth]
He was wrong, or you misunderstood.
[/QUOTE]
Both possibilities, no doubt about it.
Ok, I now have to apologize for giving an incorrect answer in GQ based on faulty information. Fortunately, DrDeth came along and fought that ignorance!
[QUOTE=DrDeth]
hajario; there was no penalty like that back in 1984 either. Again, you might have been threatened with the $500 False W-4 penalty, which my Bro sez was heavily enforced in and about 1984.
[/QUOTE]
It was definitely the IRS so I am betting this is what it is and had I taken the time closely read your original post I would have seen that. I was in a hurry this morning so I didn’t take the time that I should have. Not to be too much of a nit picker but isn’t filing a false W4 a form of tax evasion?
This makes sense because I claimed exempt on my W4 that year so no taxes at all were taken out. Then I didn’t file because I didn’t make enough that year which the nice man on the phone at the IRS told me would be just fine.
A year and a half later I got the letter with the $500 penalty. Two letters and a couple of phone calls later I got a hold of a guy who dictated to me exactly what I had to say in my next letter and it worked. I got a form letter telling me that the fine was waived.
Anyway, I clearly remember the IRS guy telling me, “the purpose of that rule is to catch tax evaders but all we ever end up getting is students with summer jobs.”
I was still wrong in that the problem wasn’t with the not filing but rather with the way in which I filled out my W4. Thanks for fighting that ignorance.