The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: Estimated Taxes Date:  8/10/2001  10:01 PM
Author:  Charlie48K Number:  53240 of 127753

sooooo..... to finally get to my question...... Should I just pony up the amount I expect to owe for 2001 since I blew (and so did the IRS) the Safe Harbor timeliness rules on estimated tax payments?

See the IRS instructions for estimated tax payments. Do you get a salary subject to withholding? If you'd said the problem a possible solution would have come sooner. If you have employees and pay yourself a salary and withhold and file 941s for your salary like a lot of small businesses do, then you can still get out without a penalty. Withholdings on salary are considered to be spread equally through the year. In other words, you can start withholding almost all your salary and get the tax witholding up to what you owe. If your spouse works another job and you file jointly, you can increase her withholding. At the end of the year, the withholdings would be considered to have been spread equally through the year.

If you can't do that, get the third quarter up to the right amount and you'll only owe for two quarters. That's due by Sept 15, I think.

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us