USAO Application Tax Question Forum

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Anonymous User
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USAO Application Tax Question

Post by Anonymous User » Wed Mar 10, 2021 2:39 pm

The USAO I am applying to has a question on the application asking whether one has "failed to file or pay Federal, state or other taxes when required by law or ordinance." I have always done my taxes on time and timely paid whatever I owed when filing my taxes each year. There was some issue with my W4 last year and when I went to file my taxes, I was told I had to pay a very small monetary penalty because my employer had not deducted enough from my paycheck. I don't think this will happen again this year (by the time I found out it was already pretty late in the year) but I am now working with an accountant and am going to redo my W4.

I don't know if I need to say yes to this question. Technically, you do have to pay a certain amount of "estimated taxes" throughout the year prior to your actual filing and so I was penalized for underpayment of these taxes as per the law (probably the law entitled "Failure by individual to pay estimated income tax"). But looking at this question and the background check materials, I think they are really looking for things like people failing to file their returns, failing to pay what is owed, etc.

Any insight into this is greatly appreciated. I'm at a loss as to who I can contact about such questions, aside from law school career services.

Anonymous User
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Joined: Tue Aug 11, 2009 9:32 am

Re: USAO Application Tax Question

Post by Anonymous User » Wed Mar 10, 2021 2:54 pm

I'm a little confused about why you're paying estimated taxes if you have an employer who's issuing a W-4 (amount withheld by your employer over the year isn't, to my knowledge, the same as paying estimated taxes, which is a thing that you do if you're self-employed or in business for yourself).

But in any case, yes, to my understanding the major concern is that you aren't paying/filing at all, not that you make a mistake when you do. This is very much the impression I got when I was interviewing with USAOs. I think if you filed taxes as required, and paid the penalty when you were informed that it applied, you can answer "no" to that question.

Also, if you're just applying now, and you get an offer, you will probably have the opportunity to clarify the question with someone involved in administering the background check, which is when it will really matter.

Anonymous User
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Joined: Tue Aug 11, 2009 9:32 am

Re: USAO Application Tax Question

Post by Anonymous User » Wed Mar 10, 2021 3:06 pm

Thanks for the response. OP here. By "estimated taxes," I meant the amount deducted from each paycheck by my employer, not the estimated quarterly payments some independent contractors, etc. have to make to the IRS. I think technically what is deducted from your paycheck may also be an "estimated tax" within the meaning of the particular law I was referencing when I mentioned my penalty, but I'm not sure and am (clearly) not a tax lawyer.

Anonymous User
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Joined: Tue Aug 11, 2009 9:32 am

Re: USAO Application Tax Question

Post by Anonymous User » Wed Mar 10, 2021 3:11 pm

I'm not a tax lawyer either, but I don't think your withholding counts as estimated taxes under that law; I think estimated taxes is a term of art with a specific meaning.

But in any case, I still think you can answer no.

Barrred

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Re: USAO Application Tax Question

Post by Barrred » Wed Mar 10, 2021 4:05 pm

Answer No. The question is asking if you ever just failed to file/pay your taxes at all, not whether you've ever had to pay an underpayment penalty (which is common, and not a crime). People overthink these questions all the time, and cause themselves massive (and totally avoidable) headaches as a result. Don't be one of those people.

Anonymous User
Posts: 428116
Joined: Tue Aug 11, 2009 9:32 am

Re: USAO Application Tax Question

Post by Anonymous User » Wed Mar 10, 2021 4:24 pm

Barrred wrote:
Wed Mar 10, 2021 4:05 pm
Answer No. The question is asking if you ever just failed to file/pay your taxes at all, not whether you've ever had to pay an underpayment penalty (which is common, and not a crime). People overthink these questions all the time, and cause themselves massive (and totally avoidable) headaches as a result. Don't be one of those people.
Too late. :)

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