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Old 12-19-2016, 08:29 PM
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Paying estimated taxes lumpsum in the 4th quarter

I owe estimated taxes for 2015 but forgot to pay and mail the 1040ES vouchers. Can I send all the amount lumpsum with the fourth voucher and minimize interest/penalties? Is there a way I can transfer funds electronically rather than mail the check before the 2016 tax return is filed?



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Old 12-20-2016, 03:50 AM
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I owe estimated taxes for 2015 but forgot to pay and mail the 1040ES vouchers. Can I send all the amount lumpsum with the fourth voucher and minimize interest/penalties?========>yes;however, you may incur a penalties/interest since you don't make previous 3 quarterly payments of estimated taxes. Don't panic if you have an underpayment. The penalty is equivalent to interest on the amount of the underpayment. It's best to avoid the penalty, but the penalty will be minimal if the underpayment is small or is corrected within a short period of time. Asyou underpay your estimated tax you may be assessed a penalty in the form of interest on the underpayment for the period when the underpayment occurred. Unlike most tax penalties that are assessed based on an annual liability, the underpayment of estimated tax penalty is calculated--and assessed--separately for each payment period. This means that you may owe a penalty for an earlier payment period even if you later paid enough to make up the underpayment.
As a matter of fact, if you didn't pay enough tax by the due date of each of the payment periods, you may owe a penalty even if you are due a refund from the IRS when you file your income tax return.
The federal income tax system is a "pay as you go" system. In general you're required to pay tax over the course of the year rather than waiting until April 15.an exception is; If you receive a large amount of investment income in one year , say, you sell stock at a large gain or make a rollover to a R-IRA ,you may not be required to pay estimated tax even though you owe a great deal of tax that year. You may be able to delay your tax payment until April 15 because of the exception for the prior year's income.but You won't get this free ride the following year, though. Now you'll be looking back at a year in which your income was higher. If you have two years in a row when you have income that isn't subject to withholding, you probably have to make estimated tax payments for the second year.


Is there a way I can transfer funds electronically rather than mail the check before the 2016 tax return is filed?======>Yes there is; please visit the IRS website and follow the instructions; you need to claick on ENROLL --
Click on? I accept the Privacy Act and Paperwork Reduction Act.? Then click on either ?individual? or ?business(for S corp C crop or LLC)?-if you click on ?individual? then you need to give them your SSN#? and follow the instructions.


https://www.eftps.gov/eftps/index.jsp


since you're required to pay federal estimated tax, you may also be required to pay yiour state estimated taxYou need to pay your estimated state income taxes at the same time you pay your federalestimated taxes. For your State estimated taxes please vsit the website of your home state Dept of Revenue for more info.



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