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Thread: paying estimated taxes late

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    Default paying estimated taxes late

    Due to circumstances beyond my control I've fallen off schedule and out of the budget and will come up short for my estimated tax payment due next week on the 15th. My question is this: Is it best to make a small payment, much less than what I owe, before the deadline and then double up on the next payment, or pay the full amount but a week or two late?

    I realize there would be a penalty for paying late but would it cause cause a "red flag" or any other problem?

    Thanks for your help!

  2. #2
    God/dess montythegeek's Avatar
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    Default Re:paying estimated taxes late

    To the best of my knowledge the penalties are figured as amount due on date due to date paid. From that standpoint pay as much as you can now and the balance as soon as possible to minimize the penalty.

    I do not know if it will raise flags. Sorry. If your income is irregular, you can underestimate the income and make up for it later, but I would not count on that as a game you can play.

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    Default Re:paying estimated taxes late

    definitely pay as much as you can towards the September 15th payment. As Monty points out, you can probably get away with making up the "difference" in your January 2005 payment without anybody noticing - but if you are audited you may be hit with 3 months interest on the underpaid September 15th amount, plus a penalty.

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    God/dess NinaDaisy's Avatar
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    Default Re:paying estimated taxes late

    Do estimated taxes need to be in by the 15th or just postmarked on that date like regular taxes?

    This grasshopper still has much to learn about financial matters... ed:
    "She has written so well, and marvellously well, that I was completely ashamed of myself as a writer...But this girl, who is to my knowledge very unpleasant and we might even say a high-grade bitch, can write rings around all of us who consider ourselves as writers"

    Ernest Hemingway on writer, aviation pioneer and horse trainer Beryl Markham


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    Default Re:paying estimated taxes late

    postmarked I believe

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