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IRS Increases Penalty for Tax Underpayments to Eight Percent

via CBS Miami
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The IRS will be increasing interest rates for estimated tax underpayments from three to eight percent, particularly affecting gig workers and consultants who don’t have taxes withheld.

Most filers must pay 90% of their taxes through withholding or estimated payments to avoid penalties, with the IRS charging interest penalties for underpayment.

“The penalty may apply even if we owe you a refund,” the IRS website read. (Trending: Tucker Reveals The Moment He Became A Full-Blown Trump Supporter)

The IRS also delayed making gig workers report payments over $600, and a survey found most Americans agree that Congress should repeal funding for 87,000 additional IRS agents.

“The postponement of the rule is a victory for gig workers who work more than one job to make ends meet in President Joe Biden’s struggling economy,” one critic sarcastically noted.

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