Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 10-20-2015, 04:22 PM
Junior Member
 
Join Date: Sep 2015
Posts: 10
Paying estimated tax on time instead four

we have small business as LLC and we havent really get paid much last 3 quarters of this year as we reinvested most of the profits back to the business so we never paid any estimated tax. However since we purchased huge amount of inventories our sale has just rocketed and we expecting large payments to our selves (2 member) as a guaranteed payment, which we might owe tax liability at the end of the year. So we thought we should make same estimated tax payment on the 15th of Jan (last quarter of the year). Last year was our first year of business so we never owe any tax on our return.

I MEANT TO SAY SAY (PAYING ESTIMATED TAX ONE TIME INSTEAD FOUR QUARTERS)

thank you for the assistance


Last edited by jaarso81 : 10-20-2015 at 04:24 PM. Reason: Spelling error


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 10-21-2015, 04:18 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,227
we have small business as LLC and we havent really get paid much last 3 quarters of this year as we reinvested most of the profits back to the business so we never paid any estimated tax. =>In reality many small biz owners do not even usually pay quarterly estimated taxes due to lower amounts of penalties and interest; however, unless your taxable net earnings are small enough roughly NO accurate or established brackets $25k or $30K for small biz, you may be subject to high penalties and interest for NOT paying quarterly estimated taxes.what I mena is ; If you underpay/ do not pay only a small amount, or you correct the underpayment quickly, the penalty will be small.

However since we purchased huge amount of inventories our sale has just rocketed and we expecting large payments to our selves (2 member) as a guaranteed payment, which we might owe tax liability at the end of the year. So we thought we should make same estimated tax payment on the 15th of Jan (last quarter of the year). Last year was our first year of business so we never owe any tax on our return.=====>please read below.

I MEANT TO SAY SAY (PAYING ESTIMATED TAX ONE TIME INSTEAD FOUR QUARTERS)>> Generally, if you do not make at least a minimum payment for a certain payment period, you STILL will owe a penalty/interest. Likewise, if you miss a payment for a certain payment period altogether, then you will owe a penalty/interest from the date the payment was due until the date the payment is made. That being said, say, if you miss the first payment, there is nothing you can do at this point ,short of time travel ,to avoid paying interest/late filign penalties. The interest starts from 4/18/15 and ends the moment the IRS receives the payment.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 10-21-2015, 01:03 PM
Junior Member
 
Join Date: Sep 2015
Posts: 10
If my AGI is high enough to attract tax but after taking standard deductions and exemptions my taxable income significantly reduces to where tax due becomes less than $1000 would i be safe from making estimated tax?

Thank you again really appreciate your time



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #4 (permalink)  
Old 10-22-2015, 02:29 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,227
Quote:
Originally Posted by jaarso81 View Post
If my AGI is high enough to attract tax but after taking standard deductions and exemptions my taxable income significantly reduces to where tax due becomes less than $1000 would i be safe from making estimated tax?

Thank you again really appreciate your time
Aslongas you expect to owe less than $1K in taxes for the tax year after subtracting nonrefundable/refundable credits and your federal income tax withholding from the total amount of tax you expect to owe this year , then,you're safe;you don't need to make quarerly estimated tax payments.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
can i avoid paying estimated taxes when 2015 AGI higher ps432 Estimated Taxes 1 09-04-2015 09:57 PM
First time paying taxes in US. Am I paying all taxes? Adol Sole-Proprietorship 1 02-13-2014 03:48 AM
First time paying taxes in US. Am I paying all taxes? Adol For 2013 0 02-13-2014 02:39 AM
Please Help - Paying Estimated Taxes kimberw Estimated Taxes 0 03-31-2009 12:44 PM
Paying individuals outside of US yaman Limited Liability Company 0 02-23-2008 03:07 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning