Gwinnett/Atlanta/Johns Creek CPA: When are Taxpayers Required to Pay Estimated Taxes?
Each tax year is quartered off into four payment periods. Every quarter has due dates that are quarter specific and must be met. Penalties can be incurred if these due dates are not me, refunds notwithstanding.
The EFTPS system has been the easiest and most popular method to paying federal and state taxes on time and in full. Every type of tax payment, like FTDs and other taxes, should be paid electronically through the EFTPS. The EFTPS offers payment plans that you can set to your convenience, these will help ensure you have paid the tax in full by the quarter’s payment due date.
What Happens When Estimated Taxes are Underpaid?
If the taxes due for the year were not met by withholding or estimated tax to Georgia and the IRS then they may charge a penalty under the claim of the Underpayment of Federal Tax. Many taxpayers will not be subject to this penalty because they do not owe more than $1,000 dollars. Taxpayers with uneven incomes may also avoid this penalty but should check with the IRS before assuming that they are safe to do so.
The penalty has a possibility of not going through if:
• A casualty, disaster, or other unnatural disastrous occurrences have happened in the past year.
• The taxpayer retired in the past fiscal and tax year. This also applies to those who have become disabled during their payment period. All these will be heard and not filed as long as there are no signs of willful neglect.
Having been an Atlanta CPA serving business owners as a Virtual CFO for decades I have learned that tax planning is essential to avoid:
• Unnecessary Tax Fines, Penalties & Interest
• Unnecessary Surprises at Year-End When Your Taxes are Prepared
• Unnecessary Cash Flow Concerns.
Be sure you work with a CPA who is a forward thinker!!!
www.HisCPA.com A Faith Based CPA Firm Serving Duluth, Gwinnett, Atlanta, Alpharetta, Johns Creek, Dunwoody, Roswell, Snellville, Lawrenceville & Beyond.