I got a new computer recently and previously always had reminders in Outlook to pay my taxes. I completely forgot January and just had the o shit moment.

In 10 years I have never missed one, do I just send it in now? Do I need to do any additional paperwork? I am assuming I will have some penalties? Always something...

I think you are scott free after 7 yrs. Keep it on the down low.
You sent it in. You know how the USPS is.

What are they gonna do? So you're late. You call them, tell them you're sending the money, ask if there's a late-payment penalty, and move on. With a clean history, they're most likely not going to get pissy about it.

I assume you're talking about business taxes and not personal, but about ten years ago my girlfriend had severe financial problems due to medical bills from cancer surgery and radiation treatment. The IRS was the only group she dealt with that was reasonable and understanding about it, granting extensions and changes in her payment plan over the several years it took her to catch up.

I'll suggest you call them on Tuesday and discuss it with them, and not worry about any trouble coming out of it.

Hopefully a tax accountant will pop in here to give the definitive answer to your question.

But if I recall, isn't the penalty only if you end up paying a lot pf income tax come tax day next year? If so, can't you just double up on your next quarterly payment?

IIRC there is only a penalty if 80% of your taxes owed are not paid by the end of the yr. The penalty is not that big. You could wait and send it in when you file.
I have forgotten a few over the years, but mine are usually 2nd or 3rd qtr. I just send it in when I remember.

quote:

Originally posted by rexles:
IIRC there is only a penalty if 80% of your taxes owed are not paid by the end of the yr. The penalty is not that big. You could wait and send it in when you file.
I have forgotten a few over the years, but mine are usually 2nd or 3rd qtr. I just send it in when I remember.

same.

From recollection, the penalty is 10%. When I was back before the bubble burst in 2000, some of the guys I was working would just pay the 10% instead of paying the quarterlies figuring the made a lot more than 10% holding onto the stock until tax time. I never did ask if this bit them on the rump when the bubble burst.

I don't pay any taxes to the state of Utah until all at once at the end of the year when I send in my tax return. No big deal. It's just one big ass bill.

I've never incurred a penalty.

Presume you are talking about a 1040 fourth quarter estimated tax payment. No need to call IRS - they don't give a shit. Send in the payment now and when you do your return, the penalty for underpayment of estimated tax will be calculated based on the actual dates the payments were made. Won't be much.

I don’t have your answer but we send in a nice quarterly check for our business taxes. Have never forgotten or missed a quarterly payment. Our accountant gives us new quarterly statements with pre addressed envelopes every year.

I’ve always said if everybody had to sit down and write a check to the government every 90 days I’d bet the tax system would be quite different.
People who just have it taken out of their check don’t even realize how much they pay they just look at the take home bottom line.

I once paid my Q3 taxes late on about Oct 15th. There was a small interest penalty added when I did my return. Something like $15.

Just send in the payment at the regular rate just like it's on time. If there are penalties, they will let you know. We missed a couple of timely payments when we ran our business and nothing happened. They just accepted the money and we paid no penalties. We were only a couple of weeks late so maybe there was some sort of grace period. Worst case they send you a bill for the late fees which of course you should pay ASAP.

PS: If your payment was a very big number and consequently the penalty is a big number, you may want to request "First Time Abatement" if you have a clean history. It's a one-time deal so I generally don't use it unless the penalty is significant. See the link.

IRS First Time Abatement Program

quote:

PS: If your payment was a very big number and consequently the penalty is a big number, you may want to request "First Time Abatement" if you have a clean history. It's a one-time deal so I generally don't use it unless the penalty is significant. See the link.

IRS First Time Abatement Program

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Best advice above.



This is one reason I employ an accountant. One year my money market fund decided to employ the two signature rule due to a clerical error on THEIR part. The consequence is the check to the IRS was returned unpaid because it only had one signature. It cost us a few bucks but my accountant knew exactly what to do.

quote:

Originally posted by NavyGuy:
Just send in the payment at the regular rate just like it's on time. If there are penalties, they will let you know. We missed a couple of timely payments when we ran our business and nothing happened. They just accepted the money and we paid no penalties. We were only a couple of weeks late so maybe there was some sort of grace period. Worst case they send you a bill for the late fees which of course you should pay ASAP.

THIS. You've got a good history of consistent payments as long as you get it in, you're fine. I missed one quarterly by two months, no issues, sent it in, no notices or, penalties. There may be issues depending how large your quarterlies are but, shouldn't be an issue.

NOW the government shutdown makes sense.

"penalty" is computed by the day. Send in the payment via certified mail so you can prove date of mailing.

when you prepare your return there should be an input screen that allows you to indicate when each quarterly payment was made.

I looked at the instructions for Form 2210 Link and it looks like the penalty is 4% per year. So the penalty will not be huge

Include form 2210 with your return - often the IRS will accept your computation of the penalty. Alternatively, you'll have your computation of the penalty and if the IRS sends you a bill you can send them the 2210 and a copy of the certified mail receipt and ask that the IRS adjust their computation.

Hopefully this makes sense.... it's been a long day.

Thank you guys! I am an independent contractor with a 1099, it is the 1040ES that I missed, about $9k payment. I just use TurboTax for the time being, although I really want to find an accountant. I hate doing taxes with a passion and they might be able to save me some money!

Penalty will be about a dollar a day for every day late. That assumes you are not otherwise underestimated for other quarters. Yes, a CPA can probably save you some bucks, particularly with the business tax law changes that were just put in play. I am one and there are lots of new opportunities for those that pay attention.

I’m in your area....

Check out Roger Kirk, accountant.

He’s gotten me out of a jam. Very reasonable fees.

Andrew