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Financial Planning / Tax Strategies
|Subject: Re: Lack of AMT patch by early Jan||Date: 12/29/2012 11:45 AM|
|Author: TMFPMarti||Number: 117232 of 121112|
If no AMT patch is decided by Jan 14 or so, should I mail in an estimated payment to cover the AMT extra in order to avoid penalties?
If I understand you've made no payments other than withholding during 2012 and you're wondering whether you should make an ES payment that would bring you to 100% of 2011 in order to avoid an underpayment of ES penalty.
It's too late to completely avoid a penalty, which is calculated as interest from the due date to the date actually paid. Thus you would owe the penalty on the first three payments regardless of what you do now. The rate is currently 3% per annum. I believe it's been constant throughout the year.
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