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Posted by rlsusenet@NOSPAMPUHLEEZschnapp on January 10, 2008, 1:10 am
Please log in for more thread options Bill wrote:
> blah@blah.com (Dan) posted:
>
>> Hi, I bet this is asked a lot, I hope its an easy
>> answer.
>> I finished a W2 job halfway through 2007 and
>> went fully self-employed as a service
>> business. I've had a lot of deductions so I
>> wasn't worried at first about paying estimated
>> tax.
>> However, business has gotten much better
>> these past few months, and I don't wan't to
>> have too much of a tax liability come april
>> 15th. I want to pay a quarterly estimated tax
>> payment in january for the 4th quarter of 2007,
>> but I read in the publications that I might be
>> charged a penalty for not paying the other 3
>> estimated tax payments during the year. Of
>> course, I had a W2 job so I have some
>> withholdings and (at the time) I had no reason
>> to pay estimated tax.
>> I want to "play the game right" and not have a
>> penalty when in fact I don't deserve one. I
>> didn't have any liability in 2006, although I did
>> only get a $40 refund because I did a lot of
>> side-work (i.e. I was both W2 and 1099 for the
>> entire year in 2006).
>> How do I pay my liability for late-2007 without
>> incurring a penalty or setting up any red flags
>> with the IRS?
>
> You could attempt to do this yourself, filing a belated 1040-ES and
> enclosing the 4th coupon only, but I woud like to seriously encourage
> you to seek professional assistance -- especially in this first year of
> your growing and apparently succssful business.
>
> It's not only a matter of properly communicating with the IRS -- to
> avoid a minor penalty; it's really getting your business set up properly
> for the years ahead. An experienced small business accountant/tax
> preparer can be an invaluable asset for that purpose.
>
> Please spend what it takes to get some good basic advice and assistance.
> At the very least, you'll have your books organized properly for the
> fist year, and avoid any serious IRS problems. If you determine that
> the format is basically manageable and decide to proceed on your own in
> the future, at least you'll have had the guidance to set it up correctly
> -- and you can crib the proper procedures for your own benefit.
>
> Please hie thee to an accountant, immediately.
>
> Bill
>
Wait, "belated"? I thought you have until January 15 2008 to pay 4Q07
estimated taxes.
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