If you own a business that is profitable, it is likely that you will have to make estimated tax payments. There are few industries that are exempt from this, but for the majority of us, this rule applies. Failure to tender these payments results in a penalty for not pre-paying taxes. Estimated payments are also important should you run into trouble with the IRS when requesting for tax forgiveness. With good compliance procedures, determining your quarterly amount is quite simple. This is why I always push for having good books and having EFTPS set up. EFTPS or The Electronic Federal Tax Payment System® allows taxpayers to make their quarterly estimated payments online. Taxpayers may also use this system to set payments for the whole year. Thus, relieving their stress at each quarter due date.
Below is a graph of the estimated tax due dates and period they cover. Should you have any questions, feel free to reach out to us at 972.764.3301. We love taxes, and we'll be more than happy to help you.