IRS tax projection tool?

[David]

Does anyone know if there is a free online tool for taxpayers to use to run what if scenarios and see the tax impact of those scenarios?

 

Thanks.

[kcjenkins]

If I knew of such a link, I'd never give it to a client.  They don't know enough tax law to understand the full repercussions, that's what they need us for.  Think for a minute about TurboTax and how often we get new clients when the t/p has screwed up using that.  It's not a bad program.  It's the user not really understanding some of those easy 'questions' that cause their problems.

[Abby Normal]

Don't know if this will help in your case or not, but it's a nice site:

 

http://www.dinkytown.net/java/Tax1040.html

[Jack from Ohio]

I have tax software for that.

[SaraEA]

A related question:  Does anyone know of software that will calculate interest on unpaid taxes that are years overdue?  I usually don't calculate it if it's more than a year or two and tell the client the IRS will send them a bill so just pay it.  I just finished 8 years of amendments for a taxpayer in the Offshore voluntary Disclosure Program (and least we hope he was accepted--haven't heard yet).  Part of the requirement is to pay all taxes and interest with the submission.  The interest rates change monthly, and I have no desire or perhaps the expertise to calculate interest from April 2005 to now, from April 2006, etc.  I'm ready to tell the client to send the IRS an extra $50k and let them figure it out.  The client did hire an attorney to handle the OVDP, so I'm hoping they will do the calculations.  But the attorney in turn hired us under a Kovel agreement (first I've ever had), so I'm fearful they might expect me to do the math.

[Jack from Ohio]

A related question:  Does anyone know of software that will calculate interest on unpaid taxes that are years overdue?  I usually don't calculate it if it's more than a year or two and tell the client the IRS will send them a bill so just pay it.  I just finished 8 years of amendments for a taxpayer in the Offshore voluntary Disclosure Program (and least we hope he was accepted--haven't heard yet).  Part of the requirement is to pay all taxes and interest with the submission.  The interest rates change monthly, and I have no desire or perhaps the expertise to calculate interest from April 2005 to now, from April 2006, etc.  I'm ready to tell the client to send the IRS an extra $50k and let them figure it out.  The client did hire an attorney to handle the OVDP, so I'm hoping they will do the calculations.  But the attorney in turn hired us under a Kovel agreement (first I've ever had), so I'm fearful they might expect me to do the math.

Calculate using the highest interest rate.  Send too much.  The client will then get a refund in a few months.

[kcjenkins]

TimeValue Software has a great program for the interest/penalty calcs.  Or if you don't want to spend the 150, follow Jack's advice.

 

http://www.timevalue.com/products/taxinterest/overview.aspx