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Conference nyoss1::market_investing

Title:	Market Investing

Moderator:	2155::michaud

Created:	Thu Jan 23 1992
Last Modified:	Thu Jun 05 1997
Last Successful Update:	Fri Jun 06 1997
Number of topics:	1060
Total number of notes:	10477

544.0. "1993 IRS Tax Penalty Question" by DECWIN::HURLEY () Fri Aug 06 1993 10:02

I was reading in Money magazine that if the presidents new Tax Bill
passes you can't be penalized for this years tax bill if you underpay.

Is this true in all cases?

The reason I ask is that last year I had to pay extra in April
but I was not penalized because the previous year I did not have
a tax liability.  This year I've been paying extra taxes because
I don't want to be penalized, should I stop paying these extra
taxes if the tax bill passes?

Thanks,
John

T.R Title User Personal
Name Date Lines

544.1 VSSCAD::SIGEL Sat Aug 07 1993 23:04 9

T.R	Title	User	Personal Name	Date	Lines
544.1		VSSCAD::SIGEL		`Sat Aug 07 1993 23:04`	9
	Re .0 John, I think the lack of penalty only applies if you're in one of the tax brackets that were hit by the increase. If your tax rate isn't changing (and it's over $140K for couples [I forget the singles break point] that the new rates kick in), then the penalty amnesty doesn't apply to you, and you should continue to pay your estimated taxes. -- Andrew

Re .0

John, I think the lack of penalty only applies if you're in one of the tax
brackets that were hit by the increase.  If your tax rate isn't changing 
(and it's over $140K for couples [I forget the singles break point] that 
the new rates kick in), then the penalty amnesty doesn't apply to you, and
you should continue to pay your estimated taxes.

-- Andrew