Hello, this is Ion from Smart Tax Advisor. We want to talk to you a little bit about a situation that has come up with our clients in terms of estimated tax payments. I've had several clients who misunderstood that estimated tax payments are a requirement. You are supposed to be paying taxes on an ongoing basis when you're a W-2 wage earner. You would pay your taxes with every paycheck. Well, as a self-employed individual, the IRS expects you to pay taxes on an ongoing basis four times a year. With estimated tax payments, it's not optional. Some people believe it's an optional thing that they can wait until the end of the year to pay the taxes. That's not really true. You need to be able to pay your taxes on an ongoing basis. Otherwise, you face penalties for not paying estimated taxes. Penalties will tell you to pay taxes and worry when it comes time to file your tax return. And if we have to file an extension, if you're not aware of how much you need to pay and you don't pay anything with the extension, you have a penalty. So failure to pay even that. So we want to really kind of get it across to you that you should be talking to your accountant if you're self-employed to be able to set aside money, pay your taxes on an ongoing basis throughout the year, not just at tax time. It's not optional. I'm kind of making that point of focus because I've had several clients who were surprised and shocked when they found that they owed money in penalties and interest. They thought it was okay to wait until the end of the year. Again, this is Pauline from Smart Tax Advisor.
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2210 waiver explanation Form: What You Should Know
Tax Penalty Waiver — You Pay Tax Due, IRS Issues Written Statement If you choose the IRS to waive your penalty, IRS sends you a written statement indicating what the tax is. Tax Penalty Waiver — Federal Tax Commissioner If you chose the Commissioner to waive your penalty, the Commissioner must certify the amount to be withheld, the amount or type of tax, and the reason for the waiver Petition Taxpayers With Too Many Penalties, Tax Filing Deadlines You owe taxes because of a penalty in excess of the amount on your tax return. You should ask the IRS to waive the penalty to avoid the risk of filing a penalty return. Get Your Penalty Waiver When you received an Estimated Tax Payment in the Filing Year, you filed your return, paid your penalty, and the due date for your tax return rolled over the due date to the following Year. Taxpayers will normally receive a letter from the IRS that a waiver application has been filed. You'll also receive information and instructions about submitting the waiver to the IRS. Additional IRS Resources For further information about the Federal estate and gift taxes, see the following documents from IRS Publication 519, The U.S. Estate and Gift Tax. The information on this website is general in nature and is not intended as legal advice.
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