Question for Fish, or others about taxes

[bigbet1234]

I usually pay quaterly on my taxes. If I decide to stop paying quaterly, and pay just one time in April will that raise in red flags?

I know Fish, you said you pay the small interest, beings you can make more off the money than the small penalty.

Thanks,

BB

 

[Fishhead]

Who really knows?

My guess it would probably be best to go ahead and pay the quarterly installments.

Probably doesn't make much difference either way in the longrun for the IRS.

Somebody here would more about that than myself.

-FISH-

ps- By the way BB, the majority if not all tax threads are being placed in the FINANCIAL FORUM to better keep them organized. Will move this one down there in due time. Be sure to check that forum out.

 

[grnmax]

Paying the quarterly estimates will help protect you against penalties. Not paying them is no red flag, but paying them make you look more like a regular Joe. Plus, if you owe a great deal, the estimates help ease the sting a little.

 

[PercocetThreat]

The IRS gets pissed when you play the float with their money.

 

[zeeman]

No red flag. You may incur a penalty for underpayment of estimated taxes. Rule of thumb is to have at least 90 % of your current taxes paid either through payroll withholding or 4 equal estimated payments. If your not sure what your current tax will be, you need to look at your previous years tax and to safeproof yourself from penalties you should paid in 100% of your prior years tax, or if you are a high income earner you should pay in 110 %. Use the 90% rule when your tax liability decreases from the previous year, use the 100 or 110 % when your tax liabilty increases from the previous year. But again not a red flag by not making estimated payments, it just may cost you a lot in penalties.