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IRS Increases Interest Rate on Underpayments
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Avoiding Tax Filing Mistakes
Guide for First-Time Filers on Taxes
IRS Announces 2024 Tax Filing Season
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The IRS has raised the interest rate on estimated tax underpayments from 3% to 8%, targeting gig workers, consultants, and individuals with additional income. This change has resulted in over $1.8 billion in penalties for underpaying estimated taxes in fiscal year 2022. Taxpayers are advised to make quarterly tax payments and stay informed about their estimated tax obligations.
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How might the IRS's penalty waiver process be improved to provide greater transparency and fairness for taxpayers?
How might the increased interest rate on estimated tax underpayments affect the financial stability of gig workers and consultants?
What steps can taxpayers take to avoid underpayment penalties and ensure compliance with estimated tax obligations?
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