Hey Abe! I recently received my quarterly estimate for Abacus, but did not have the full amount of money recommended to pay in. What should I do?
Abe: Great question! It is always advisable to make a quarterly tax payment, even if it is not the full recommended amount suggested by our preparers. If quarterly payments are not made, it could lead to a large tax liability at the time of filing and penalties and interest being added to the balance due.
Since quarterly estimates do not require a tax filing, there are no figures being reported or filed with the IRS pertaining to your business. Because of this, we always advise clients to make a payment when they can because your difference can be made up either by paying extra in one of the remaining quarters or make up the difference on your end-of-the-year tax return.
For example, say you could only pay $1500 of a recommended $2000 payment for your first quarterly payment of the year. You can pay the $1500 toward the current quarter and make up the $500 difference by paying more in the remaining second, third, or fourth quarters.
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