Why are you so sure they will always give you the benefit of the doubt? They certainly didn't give that to me when I first ran into this problem in the 80s. And what are you hiding under the hedge 'generally'?
The penalties are high enough that you should be absolutely sure you are exempt before you decide not to do the estimated payments. Most of us can be that sure only after talking to an accountant. On Jan 21, 1:23 pm, Brad Gies <[email protected]> wrote: > The IRS will ALWAYS give you the benefit of the doubt the FIRST YEAR > ONLY. In fact, according to the rules the need to file quarterly only > kicks in IF you owed more than $1,000 the previous year... You generally > won't be penalized if you fail to file at the end of the first quarter > if you haven't filed your taxes for the previous year yet because you > may not even know you owe more than $1,000 (this is not law just the IRS > guidelines). They may access the penalties but they will always waive > them if you talk to them (nicely). > > What you should do is figure out the rough amount you would owe just > before the end of the year... and send them enough money to make sure > you owe less than $1,000 when you file the taxes. If you do that, you > will never trigger the requirement to file quarterly and it saves you a > bunch of work. Again.. this is not law... but it is how it works. > > For what it's worth.. I'm not an accountant (but then most accountants > actually know VERY LITTLE about taxes).. but I did operate a rather > large income tax franchise for several years, and I've only met one > accountant who knew more about U.S. taxes than I did, compared to about > 200-300 who knew a lot less. > > In general... if you do use an accountant, get one who specializes in > business taxes. A normal accountant just does not know much about > them... even if they tell you they do. When I had the tax franchise, > every year we would get 40-50 customers coming in and we would have to > file amendments to their previous years taxes because the accountants > had done such a lousy job. In one case, we amended the previous 3 years > and got a woman over $50,000 back after her accountant screwed it up so > badly. > > Sincerely, > > Brad Gies > ----------------------------------------------------------------------- > Bistro Bot - Bistro Blurbhttp://bgies.com > http://nocrappyapps.comhttp://bistroblurb.com > http://forcethetruth.comhttp://ihottonight.com > ----------------------------------------------------------------------- > Everything in moderation, including abstinence (paraphrased) > > Every person is born with a brain... Those who use it well are the successful > happy ones - Brad Gies > > Adversity can make or break you... It's your choice... Choose wisely - Brad > Gies > > Never doubt that a small group of thoughtful, committed people can > change the world. Indeed. It is the only thing that ever has - Margaret Mead > > On 21/01/2011 12:14 PM, DanH wrote:> Basically, if you make enough that you'd > end up owing the tax man more > > than an nominal sum at the end of the year, you need to make estimated > > income tax payments. However, if you have a "day job" that has > > regular withholding, you can probably up the amount of withholding > > (eg, declare fewer exemptions on your W4) and not have to make the > > separate payments. Also, the IRS gives you something of a grace > > period for your first year (though the rules on that are kind of > > fuzzy). > > > In my case I have to make estimated state tax payments on my 1099 > > income, but my federal is covered by the withholding from my pension. > > > Using something like TurboTax is a good idea. Generally it will lead > > you through all the right steps (although the recent year versions > > have gone overboard on "guiding" you, to the point that you sometimes > > want to drop-kick the whole thing). > > > On Jan 21, 10:39 am, TreKing<[email protected]> wrote: > >> On Fri, Jan 21, 2011 at 10:36 AM, Justin Giles<[email protected]> wrote: > >>> Also, for those who have made any significant amount of income, you should > >>> probably be making quarterly payments throughout the year, or risk > >>> additional fees at the end of the year. > >> Can you define "significant" for those of us whose eyes glaze over at the > >> mean mention of doing taxes? > > >> ------------------------------------------------------------------------------------------------- > >> TreKing<http://sites.google.com/site/rezmobileapps/treking> - Chicago > >> transit tracking app for Android-powered devices > > -- You received this message because you are subscribed to the Google Groups "Android Developers" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/android-developers?hl=en
