Estimated Tax Payments

[Dan]

If one has made the 1st, 2nd, and 3rd quarterly estimated tax payments and finds that not enough estimated taxes were paid what is the proper procedure to do concerning the 4th quarterly estimated tax payment?

Can one just add more payment on the 4th quarterly estimated payment? Is one required to send in a worksheet or etc.?

Thanks for your early response!!!!!

[TAXBILLY]

Add to the 4th. No worksheet required.

taxbilly

[BulldogTom]

Use the annualization method on the 2210 to try and reduce the penalty for underpayment if you don't get enough paid in.

Tom

Lodi, CA

[Dan]

Thanks for the information!!!!

[Slappy Tax]

EFTPS would make this a snap.

[JohnH]

I'm trying to figure out how using EFTPS would have any effect on this situation. Regardless of whether the payment is submitted electronically or via paper, if there's an estimated tax penalty then it's going to apply either way. The only difference might be a day or two for the posting date for the payment.

[Slappy Tax]

Oops, you are correct about the EFTPS. I misread the original post. I thought the person had already made a Q4 Est Tax Pmt, and was wondering how to make a second catch-up Q4 payment. I now see that he was asking whether just to boost the pending Q4 pmt, and if so, how. My point about EFTPS is that when you make Est Tax Pmts via EFTPS, the system asks you for only 3 inputs: the amount, the year, and the settlement date, and you do not specify which "quarter" (or more accurately which estimated tax deadline) you're responding to. I still think EFTPS is a better way of fiddling with tax payments, but you're right that in this instance it would make no difference.

[OldJack]

>>but you're right that in this instance it would make no difference. <<

Unless you are talking about the delay in posting (mailing delay) EFTPS would make no difference even if making multiple payments. Just because there are 1040ES coupons that say 1st, 2nd, 3rd, and 4th quarter doesn't mean anything to the IRS. You could use the 4th quarter estimate coupon (or any quarter coupon) as many times as you like as the payments are credited to the taxpayer's account as of the date received by the IRS.

[JohnH]

Slappy Tax: Thanks for the clarification. For a moment there, you almost had me thinking about signing up for EFTPS. I'm glad that urge has passed.