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Money Saving Monday: Taxes

Remember back when I paid my taxes?

Yeah, me too. Except that I didn’t. Apparently. Who knew!? I certainly didn’t until about three weeks later, when all the money for that big fat tax bill was still sitting in my account. “Why would that be?” I asked myself.

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IRS and Payment, two words to be avoided. Especially twice in the same year.

As it turns out, the taxes I filed were rejected. A fact TurboTax promptly emailed me about during the wee hours of the morning the day it happened. An email I missed altogether, but when I searched my inbox, there it was in it’s unread glory.

The rejection was the result of a confusing Tax ID situation with one of my employers from the 2 Jobs, 1 Nightmare. That period of time really is the gift that keeps on giving. A little paper work scouring, and my taxes were re-filed. Three weeks late.

I’ve never filed my taxes late before. I had no idea what would happen. For the similarly uninitiated, if you are wondering, they send you a bill. A bill with a big fat Failure-to-File Charge ($164.29), a smaller Failure-to-Pay Charge ($18.25) and just a little bit of Interest ($5.39). For a grand total of $187.93. In a rather hilarious turn of events, this bill showed up on the very. same. day. as my much anticipated tire reimbursement money.

This is my fault. I tried in good faith to pay my taxes on time, sure. Their rejection an honest mistake (there were two Tax ID numbers!). But I missed a critical email, and I didn’t follow-up on money that should have been gone for three whole weeks. My bad. I had a bill for $188 and a check for $189. I could just pay the federal government with money from the city government. Chalk it up to a stupidity tax and move on.

Yeah, I can’t do that. My fault or no. I can’t. It is always worth a phone call.

When you call the IRS you learn cool things. Things like: Everyone can get their Failure to File/Failure to Pay fees waived once. In their lifetime. Just once. They were very clear on that. Assuming you have a good payment/filing history, you get one get out of jail free card. Isn’t that interesting? They won’t however, waive the interest charges. Monies owed reduced from $187.93 to $5.39. Still a stupidity tax, but one that’s a little easier to swallow.

Many lessons here. I wasn’t on top of my Financial Empire. That’s unusual for me, and it cost me. Ouch. But by deploying my finely honed persistence skills and my innate desire to never pay ‘just because’, it didn’t cost me as much as it could have. We all inevitably mess up. When that happens, all is not lost. Call upon your arsenal. It could still come in handy. The over riding lesson though: Pay your Taxes. Promptly.

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Comments

Tracy
Reply

My philosophy – It never hurts to ask!

Tracy
Reply

Had a similar situation. Purchased tires from Goodyear and got a $160 rebate if I signed up for their card (please don’t judge me – I am totally debt fee except for my house. When the card came in the mail I called and got the due date. When the bill came I already knew when it had to be paid so I didn’t look at the due date. When I went to pay I was 2 days late. Uggh late fee and then interest. I called and explained my situation and they waived everything. Whew!!! I still would have come out ahead with the $160 rebate but it never hurts to ask.

dogsordollars
Reply

Nice one! And no judgement here. I’ve been known to take advantage of credit card offers if they sweeten the pot enough. $160 would probably do it. ;)

lee
Reply

whew! I would have been so mad at myself if this had happened to me, so glad it turned out ok.

dogsordollars
Reply

Oh, I went through a little bit of a guilt spiral. Believe me. That’s why I was so motivated to fix it!

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