CPA told me i must pay quarterly taxes! true?
 

got my taxes done today buy a tax firm. this is my first year as a webmaster and was new to all this. He said i must pay quarterly taxes because it will avoid late fees and the irs will tell you that you should. I just went along with him and said ok. He might have had other reasons but this is what i understood from him. So the quarterly was also due today so i paid that to.

that's right, pay a professional but come to GFY to question his advice

I pay them, prefer doing it that way so I don't have one big ass check at the end of the year to pay in on.

nice!!!!!!!!!

Don't pay taxes, you are a webmaster and exempt!

Paying estimated tax isn't a bad idea, that way you don't get hit with a huge amount at the end of the year. :2 cents:

:1orglaugh :1orglaugh :1orglaugh

Crap!

I forgot all about that this year, and I already sent mine out! :mad:

pay quarterly...mani pay automaitcally every two weeks.

just set a safe number and make it deduct automatically from your bank account each time.

then you only have to cover a couple k at most each year

:winkwink: :thumbsup

If you are able to control yourself.......It is not a bad Idea to invest the money thougout the year and earn yourself some kind of return.

The only reason not to want "a big pyment" at the end of the year is if you cant keep yourself from spending it on crap.

you could pay weekly if you want/need to, but you must at least pay quarterly. apr 15, jun 15, sept 15 and jan 15 are the due dates for '07 taxes

That's what I do, one lump sum at the end of the year as a bonus or dividend.
WG

If the taxes you owe are a large amount in your second year with a profit then you could face penalties for not paying "estimated" tax which is usually done on a quarterly basis. If your yearly tax is minimal then the IRS will not require that.

If you are writing checks for more than a couple of thousand at the end of the year then it's best to pay estimated tax to avoid any legal or financial
problems.

you don't HAVE to pay estimated but its a good idea.

Exactly. Except the dates are 17th, not 15th.

If you do not pay them, you can get interest/late fees. It's not a choice if you owe more than $1000.00 for the tax year.

:2 cents:

Incorrect.

I've had both a tax attorney, and a CPA tell me on more than one occasion that you must pay quarterly if you made a profit the past year, and are going to owe more than $1000.00 for the tax year.

If you had a loss, or will owe less than $1000, then you do not have to.

You have to pay withholding tax if you pay yourself a salary. That has to be paid every month, it includes estimated withholding plus FICA taxes on your salary.

Estimated tax payments on your bonuses or dividends or any other profits that don't come in the form of a salary don't have to be paid quarterly, but if they're not you have to pay an underpayment penalty at the end of the year.

Personally I don't pay quarterly because the interest rate for underpayment is so low I'd rather use that money as operating capital during the year, and then pay the small interest charge. That's better than being without the money during the year IMO.

In the US you have to pay quarterly. If you don't, you get hit with a penalty. Basically how it works is, you must have 110% of you tax liability of the previous year paid. So you make quarterly estimates based on your tax liability from the year before. If you fall behind, you pay a penalty and if you didnt pay a shit load of taxes throughout the year, you better be prepared for a shitty penalty.

yes its true.. but how much and why varies based on several factors

best way to do it

you can make the payments online its not that painful

thanks for the replies, at first i wasnt happy about it but in the long run at the end of the year ill be glad i was forced to pay them quarterly!

Sadly, it's true.

:2 cents: plus :2 cents: equals Happy Tax Day!

I pay once a year

why should i let the govt play with my money when i can?

DITTO - This is fact.

penalties/late fees. as already stated.

yeah....looks like u make too much $$$

i dont pay penalties or late fees

my cpa has me set up on once a year tax payments

I pay yearly

Your adult webmaster "false expenses gone wild" deduction should off-set any liability.

You can also just say "I forgot" then remind the IRS guys you pay their salary (sometimes) ... good luck ..... Lee, a Jackson Hewitt franchisee.

That and the fines you get slapped with for not making quarterlies if you make any sort of significant $$.

:1orglaugh :1orglaugh :thumbsup

There are no fines (as far as I know), you only pay interest, which currently is 8%, it's somewhat high, but not terrible...

nothing like a good old straight answer from gfy

Ok well you listen to your CPA and I'll listen to mine.

I've never paid quarterly or any estimated payments for that matter. I pay withholding on my salary every month and then write one big check on April 15 every year.

You have to pay the underpayment penalty interest (which is negligible) and that's it, there are no "fines" or any other requirements other than the interest.

186 thousand miles per second . . . it's the law!!!!

You're better off paying quarterly. If you don't then bad shit happens. Take me, for example. I didn't pay any estimated taxes all '06. As a result, my accountant gave me a bill last month that made faint like someone's grandmother.

If you know your business then you have a really good idea of what the tax bill is going to be and you should plan accordingly.

If you're the kind of person that can't keep money in the bank without spending it then the odds are good you won't be in business for yourself for very long :2 cents:

This year is about $43K... I didn't pay all of the quarterlies.... Won't effect me to much but now I wish I did because I have something I wanted to do with that money... Will have to wait another month or two now... shit happens.

That I will as he is the one who puts the signature on my tax returns. Which means he had better know what he's talking about as the IRS comes to him first. I'll also listen to my tax attorney as he would be the one who would have to represent me for such matters.

You ASSume I draw a straight salary in your example. Hence, your misconception.

:2 cents: