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Financial Planning / Tax Strategies


Subject:  Re: Penalty for Payment sent with return on 4/17 Date:  6/21/2006  1:46 AM
Author:  wrjohnston91283 Number:  87492 of 127637

Is there a chance that you should have been making estimated tax payments throughout the year and that’s what the interest is from? Even if you made the payment by the 17th, if you had significant investment income you should have been making estimated payments. (if your tax liability was $4,000, you should have made payments of roughly $1,000 each quarter...if you didn't they charge you interest on the amount that should have been paid. if this is the case you should make sure that you are paid up for 2006, as an estimated payment should have been made by now. See IRS form 2210 for more information.
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