Why would I pay a penalty SHDW? I mean, when people get refunds, it isnt really a refund at all.
All it amounts to is an overpayment of taxes. Basically they allowed the government to make interest off of their money when they could have made interest on the money if they are responisble
Because if you really owed $20,000 on average per year, the IRS charges a failure to correctly estimate tax correctly. You should be making estimated tax payments or decreasing your withholding like Shdw said. There is no way you haven't been charged a penalty if what you are saying is true. When you say you are paying $10 to $20k per year, is that what you have had deducted throughout the year or is that the amount you write a check for come April 15?
And yes, people who get refunds are letting the government use their money. On the other hand the government charges you for not letting them use the money to which they were entitled thru the year.
How can you have owed for 12 years and not known this?