Author Topic: Should I make an estimated tax payment late?  (Read 1865 times)

Pixelshot

  • Stubble
  • **
  • Posts: 141
Should I make an estimated tax payment late?
« on: July 31, 2014, 07:26:43 AM »
I have a sole proprietorship and make estimated tax payments during the year to try and guess my taxes owed. I just realized that I accidentally skipped my last payment (due June 15). What do I do? Should I just ignore it and double the payment next quarter? Should I mail the June payment now (late)? The amount is not much (under $1k) so I'm not that concerned about my end of things, but want to stay in IRS's good graces.

lurker

  • 5 O'Clock Shadow
  • *
  • Posts: 13
Re: Should I make an estimated tax payment late?
« Reply #1 on: July 31, 2014, 08:38:53 AM »
Given the amount, I would just double-up next quarter.  There will be no red flags in the IRS system just because you skipped a payment.  If anything, you may owe them a little bit of interest for the time period you were underpaid (can file form 2210 with your return, or let the IRS calculate it themselves).  If the true amount due quarterly is < 1,000, the total interest owed would be < $10 (1,000 * 3% current underpayment rate * .25 (3 months / 12)).

Pixelshot

  • Stubble
  • **
  • Posts: 141
Re: Should I make an estimated tax payment late?
« Reply #2 on: July 31, 2014, 08:49:20 AM »
Thanks Lurker - follow up -

When I do make that payment, the Payment Voucher form that I printed (when I filed my taxes) to submit with each payment will have the wrong amount "owed". Does that matter or should I just write in a new amount on the form?

Cheddar Stacker

  • Magnum Stache
  • ******
  • Posts: 3714
  • Age: 41
  • Location: USA
Re: Should I make an estimated tax payment late?
« Reply #3 on: July 31, 2014, 10:16:02 AM »
Either mail it in now, or just mail both vouchers with the double check.

I would send it now to avoid future interest charges.

Pixelshot

  • Stubble
  • **
  • Posts: 141
Re: Should I make an estimated tax payment late?
« Reply #4 on: July 31, 2014, 11:31:52 AM »
Thanks. Mailed it today. Hopefully no one will call me. :)

Chunk

  • 5 O'Clock Shadow
  • *
  • Posts: 7
Re: Should I make an estimated tax payment late?
« Reply #5 on: July 31, 2014, 11:36:31 AM »
They won't call you, at least they never called me. If you don't make those payments, the penalty is just calculated when you file your taxes. It's good that you paid it now though. Better to avoid further interest.