IRS Increasing Estimated Tax Penalties: What Federal Employees and Retirees Need to Know
'...Over the past year, the IRS has significantly increased penalties on underpayment of both estimated tax payments and federal income withholding from salary and retirement income. Individuals who are required to make quarterly estimated payments (due dates each year are April 15, June 15, September 15 and the following January 15) include those individuals with large amounts of investment income such as interest, dividends and capital gains that is not subject to federal income tax withholding. Also included among individuals who should consider making estimated tax payments are retirees who have no or little federal income tax withholding from their pension income. There are federal employees with sizeable amounts amount of investment income who are paying too little or no federal estimated tax payments. There are also federal retirees who have too little federal income tax withheld from their CSRS or FERS annuities and /or Thrift Savings Plan (TSP) withdrawals...'
Reference: stwserve.com
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