Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I believe it is okay to pay quarterly taxes early (in fact, I think I had posed this question on the board before). For instance, I will be sending in my quarterly taxes due for the September 15 quarter next week (I had sent in my June 15 tax payment back in April).

But I have a question regarding this: what if I had wanted to send them in before the deadline for the second-quarter tax period? What if I had sent them in on June 1 and they arrived at the IRS by June 15? I was curious if doing this might potentially cause a mistake; would the handler possibly doubly credit me for the June 15 quarter, or would the form I enclosed with the September 15 deadline be enough to eliminate any confusion? I ask because I may be able to send in my final payment very early due to my estimate of what I need to pay. But I don't want to do this if it means that the possibility of errors will increase.
Print the post Back To Top
No. of Recommendations: 4
I believe it is okay to pay quarterly taxes early (in fact, I think I had posed this question on the board before). For instance, I will be sending in my quarterly taxes due for the September 15 quarter next week (I had sent in my June 15 tax payment back in April).

But I have a question regarding this: what if I had wanted to send them in before the deadline for the second-quarter tax period? What if I had sent them in on June 1 and they arrived at the IRS by June 15? I was curious if doing this might potentially cause a mistake; would the handler possibly doubly credit me for the June 15 quarter, or would the form I enclosed with the September 15 deadline be enough to eliminate any confusion?


Don't worry, they all go into the same 2012 pot. The only time the exact dates of ES payment are important is if there's potentially a penalty for underpayment. In such a case the payments are "credited" to the period in which they were made. This would only work to your advantage since the excess over what was required for that period carries forward automatically to the next period. You can see how this process works in the penalty calcuation section of Form 2210.

Now, I'm dying of curiosity. Why in the world do you want to pay before you have to? Depending on your reasons, we might be able to suggest a better approach.

Phil
Rule Your Retirement Home Fool
Print the post Back To Top
No. of Recommendations: 0
Hi Phil,

Thanks for your reply and help.

The reason I wanted to do it early is because I pretty much know I only need to make a nominal amount of payment this year, and I am basically splitting up the payments fairly evenly between the quarters. I like to have them mailed out as soon as I can, as I don't like forgetting about them, or making sure the envelopes and forms are perfectly made out, etc. I am somewhat OCD about filling out the little slips neatly, and I enjoy when they are in the mail and I am done with the whole process. I probably should consider doing it electronically, but I always worry that if I find I don't need to pay quarterly anymore due to a change in my circumstance, will I be obligated to continue paying since I set up an electronic account with the IRS and state?

By the way, my accountant likewise chastises me about paying early and overpaying. I overpay as well, and he always marvels at the refunds I get, saying I shouldn't do it.
Print the post Back To Top