Got a $400 penalty!

[FuzzyOne]

I can't believe I'm posting this, but I recently was penalized $400 for a 4 month late quarterly tax payment. I've been legit for about 8 years and am honest to the tee. Last season I only cut about 8 lawns, and made my fourth quarter tax payment for $44 four months late. You know, it was winter, I was on "vacation", had a new baby, etc....

So the other day the mail comes and I see the NJ Division of Taxation envelope come, you guys know the one.......where you have to tear it 4 different ways. I figure it was just and interest charge. But dang, they penalized me $100 for each month it was late. :eek:

So I called the wonderful State of NJ tax office and spoke to a lady (who sounded to be from Alabama ;) )who said, "We are penalizing everyone now!" But $400 for a $44 payment? "Well sir, you can abate it," she said.

Is this worth it? last year I really didn't keep great records. I already mailed the payment to avoid any other charges. I'm thinking of just eating the fee and chalk it up to experience. Now I know why there are so many guys that cheat the "system" in my area. I guess I'm the idiot for being honest. Let's screw the little guy!

[boonhogganbeck]

You need to call your accountant first thing Monday morning. If it can be ababted he/she should be able to take care of it.

"Boon"

[allstar]

That sounds pretty extreme. Late penalties for taxes you withhold from employees ARE pretty severe;I believe 10% if you're one day late.Maybe the law is "10% or $100 per month,whichever is greater".That's the only thing I can think of.Regardless,you really got screwed.Sorry.

[Rob T]

Yep, Good ol NJ. I get SO PO'ed at the idiot law makers in this state. You know what the problem is, they blew there budget afew yrs ago and then the economy went south and now there really in the hole. Well who's gonna bail them out? You and I are!

Anyway, you should have recieved a notice stating a $100 per month late penalty for ALL returns filed late regardless of the amount of tax due. Seems to be in effect as of May 14 as the letter is dated.

The new state slogan should read... "It don't pay to be honest in NJ"

[rodfather]

Originally posted by Rob T
The new state slogan should read... "It don't pay to be honest in NJ"

Ain't that the truth...lol

[Randy J]

In 2002, when I left my employer, I was advised I had to pay back my 401K loan in 1 lump sum or it would count as a taxable withdrawal on my 2003 taxes. Well, I didn't have that much money, so I figured the heck with it, I'll eat it on taxes. I just received the same notice as you, only from the federal government. I paid all my taxes on time - by April 15th, but since I "underestimated" my tax burden, they were fining me $185. I hit the ceiling! I sent in a letter to argue it, don't know if it'll do any good yet or not.
And there are some liberal members of this board that want the government to have more power, and for all of us to pay more taxes. :mad:

Randy