Ask Experts Questions for FREE Help !
Ask
    hoyt's Avatar
    hoyt Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Mar 6, 2007, 02:57 PM
    Late Fees (tax penalties)
    Hello,

    This is a general question, but I'll put it in the context of my situation. Last spring I sold some stock from an Employee Purchase Plan that I had held for several years. My assumption was that tax was not due on the profit of this sale until 4/15/2007. When I received the year end statement from the broker, it listed a line about Fed Tax withheld due to sale.

    Will I owe a late tax penalty on the sale of this stock if I sold it in 2006, and pay the tax on time on 4/15/2007?

    Thanks!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Mar 8, 2007, 11:54 AM
    It depends on the level of profit made. If you made over $50,000 in profit, you would be expected to make an estimated tax payment within a few weeks of receiving the money.

    If the profit is less than $50,000, you could probably get by with waiting until 15 April 2007 to pay the tax. Several safe harbor provisions would keep under-wthholding penalties from kicking in.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

College application fees and testing fees as tax deductions [ 3 Answers ]

Are the fees we are paying for our son to apply to various colleges tax deductable? Also, what about the money paid to take ACT ; SAT and AP tests? And, th emoney spent requesting these scores be sent to the universities being applied to?

Late fees [ 7 Answers ]

I live in a small town in California and recently sent in my payment for utilities (water, garbage and sewer). The bill was due on the 9th and I mailed it on the 6th. I just got a bill in the mail for $25 stating that I paid late. The total of the original bill was $65. Is it legal to charge...

Abatement - late filed - interest and penalties [ 1 Answers ]

I have a client; fellow in his late 50’s, sells real estate, fairly high income earner, Canadian, lived in Canada until 2001 then in March 2001 moved to Las Vegas to work for a real estate developer. Has subsequently bounced back & forth between the US and Canada and is currently working in...

Eviction vs Late Fees [ 1 Answers ]

Just wondering real quick if a landlord in the state of Ca can evict a tenant due to unpaid late fees even though rent itself has been paid? Or rather, can a landlord apply money given for rent, towards late fees, and then evict a tenant because all the rent has not been paid? Thanks in...

View more questions Search