so last year we took maximum withholding and still owe IRS 89K. I sold RSU to transfer money to bank account but it takes over a week and money still not in yet. Saw that there is a failed debit from IRS on Monday, what will happen? I can't sleep, please help!!! I also have a hefty late payment penalty, this is sooooo bad!
Nothing will happen, just call IRS tomorrow
You sure you just didn't manually adjust the cost basis on all the RSUs that sold? Because you're probably being double taxed on them, and don't actually owe that much
yes we did manually adjusted
Possibly worth hiring a CPA to review your tax return for a piece of mind
OP, did you pay at IRS.gov? I do ACH transfers directly from my checking account and have never had a problem. Other options include a credit card or setting up a payment plan, for a fee. Take care of this today to keep interest and penalties in check. If you owe a substantial amount you need to up your withholding or pay quarterly taxes. Use your RSU sales this year as a guide to the percentage you owe.
You could have chose the option to send a paper check. Send in the return with slowest usps mailing option since IRS only requires you to mail the packet by 15th. If you know the ACH is a day or 2 away, this might work. By the time they post the payment, your money would be available.
How much is faster paying? That seems crazy high.
Go straight to jail without collecting $200. Or worst case is a modest penalty, or no penalty, if you contact them and explain what happened.
They don’t care, already tried that
I don't get these posts 1. Why did you wait until last minute? 2. Sold RSUs last week? You had no idea you'd owe 89k?
Sell stocks next year by April 1st. Put 100k aside just in case. Be responsible,
Jail
How did you transfer? A wire should take a day or even less. The underpayment penalty for 89K is not that much if you pay by April 15. It is just the interest. Don't be dramatic. After April 15, then it will be considered late and that penalty is substantially more.
When you wrote this, wasn't it already April 16?
I did an ACH transfer last week and still pending!!