The Internal Revenue Service is reminding farmers and fishers about the March 1 deadline to take advantage of special rules that can allow them to forgo making quarterly
estimated tax payments.
Make a payment of your
estimated tax for 2017 if you did not pay your income tax for the year through withholding (or did not pay enough in tax that way).
One issue that is often overlooked is the allocation of
estimated tax payments to the taxpayer's and spouse's income tax returns, when they file separate returns in the year of the divorce.
For a detailed discussion of the issues in this area, see "Assignment of
Estimated Tax Payments in a Divorce,"by Jason Borkes, CPA, in the October 2015 issue of The Tax Adviser.
Compare your income now with what you anticipated when you set up your 2015 tax withholding or
estimated tax payments.
To find out if you are subject to
estimated tax payments or to learn more about making
estimated tax payments, please contact the Internal Revenue Service at 1-800-829-1040 or visit the IRS website at www.
If the LLC has elected to be taxed as a corporation, it will follow California corporation filing guidelines and
estimated tax requirements, and will be subject to the minimum franchise tax.
Who must pay the
estimated tax and what penalties are imposed for underpayment of the tax?
There are two methods for collecting individual income taxes in the year the income is earned: (1) withholding on income earned during the year (see below); and (2)
estimated tax payments (see below).
The first bill is an
estimated tax bill based on the previous year's bill.
For firms with at least $1 billion in assets,
estimated tax due in July, August or September 2006 is increased to 105 percent of the otherwise required amount, with the next payment similarly reduced.
Hegt said that the Alternative Minimum Tax should be eliminated; that a more objective test needs to be implemented to determine whether workers are classified as employees or independent contractors; that objective, administrable tests relating to the capitalization, expensing and recovery of capitalized costs need to be developed; that capital gains rules need to be simplified; and that
estimated tax safe harbors should be rationalized.
