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Message
What happens if you don't pay your taxes quarterly?
Posted on 7/11/13 at 12:25 pm
Posted on 7/11/13 at 12:25 pm
Being self-employed for the last year, I've been paying my taxes quarterly bc that's what my CPA wants. I don't really meet with my CPA but once every few weeks just to give him my check stubs so I don't want to bug him with a phone call over a silly question like this but what happens if I decide to stop making these quarterly payments and pay all at once?
I invest alot in cars that i buy at auctions and fix in our shops and the extra cash would definitely allow me to generate a pretty high return with me keeping all those payments and investing them in some vehicles today.
Is the penalty a flat fee? or is the penalty a percentage of income?
I invest alot in cars that i buy at auctions and fix in our shops and the extra cash would definitely allow me to generate a pretty high return with me keeping all those payments and investing them in some vehicles today.
Is the penalty a flat fee? or is the penalty a percentage of income?
2
Posted on 7/11/13 at 12:42 pm to ThaBigFella
I think it's a underpayment penalty and interest each day. That's why I was worried a few threads ago about not paying enough.
Businesses have to I believe.
Businesses have to I believe.
This post was edited on 7/11/13 at 12:49 pm
Posted on 7/11/13 at 12:44 pm to ThaBigFella
There is a fee. I don't think it's flat. I started self employment last september and didn't pay anything until january this year. I was late but they didn't access the fee because my income was close to the prevoius year. At least that's what h and r block told me.
Posted on 7/11/13 at 1:00 pm to man117
FWIW i owe well in excess of $1k/quarter and that seems to be the number i've read is the limit to not worry about if you're under.
I also read another piece that said as long as it's paid by the end of the year the IRS doesn't mind bc some businesses are seasonal
I also read another piece that said as long as it's paid by the end of the year the IRS doesn't mind bc some businesses are seasonal
Posted on 7/11/13 at 1:24 pm to ThaBigFella
I've been self employed the past 2 years and have yet to make a quarterly payment. Maybe it's laziness, or maybe I like having that money now, but the late fee isn't much at the end of the year (I think mine was about $70).
I did recently speak with a CPA though and she was adamant about me paying quarterly. She said if they ever decide to come after me I'll be paying interest on everything, so that kind of scared me.
Another reason I pay at the end of the year is because I can pay with a credit card and get the reward points. I'm not sure if you can pay quarterly with credit.
I did recently speak with a CPA though and she was adamant about me paying quarterly. She said if they ever decide to come after me I'll be paying interest on everything, so that kind of scared me.
Another reason I pay at the end of the year is because I can pay with a credit card and get the reward points. I'm not sure if you can pay quarterly with credit.
Posted on 7/11/13 at 1:34 pm to rintintin
Thanks! My CPA is the same way and frankly i know he's gonna tell me to pay it quarterly since I have it. Im like you though, I know I can invest in something here and make a nice amount of money.
My only concern is if it's a flat fee or percent penalty bc i dont mind paying even $1000 in penalties bc ill make it back with the money in hand but if it's a percentage then I'd pay up now.
My only concern is if it's a flat fee or percent penalty bc i dont mind paying even $1000 in penalties bc ill make it back with the money in hand but if it's a percentage then I'd pay up now.
Posted on 7/11/13 at 2:04 pm to ThaBigFella
shite..........neither my wife or I are self employed and we got penalized for not paying quarterly.
Posted on 7/11/13 at 2:36 pm to TJG210
I just sucked it up and bugged my CPA he said its a 2% per month penalty and wouldn't recommend it.He said if I don't want to pay the whole amount due just send them half or something so they don't bug me.
Posted on 7/11/13 at 2:49 pm to ThaBigFella
How much do you pay your CPA?
Posted on 7/11/13 at 2:56 pm to wegotdatwood
$600/quarter per business is his normal rate. With 4 stores it should be $2400/quarter but I actually only pay $1000/quarter total
He just takes my payroll check stubs from me once a month. I email him all my invoices from the jobbers(gas delivery), my etrade statements, and it's well worth $300+/month bc he saves me alot of money in deductions. He lowered my AGI significantly from what I thought it was going to be last year. I'm very happy with the fee.
He just takes my payroll check stubs from me once a month. I email him all my invoices from the jobbers(gas delivery), my etrade statements, and it's well worth $300+/month bc he saves me alot of money in deductions. He lowered my AGI significantly from what I thought it was going to be last year. I'm very happy with the fee.
Posted on 7/11/13 at 3:06 pm to ThaBigFella
Oh, I was just curious what a normal fee is. Thanks, I didn't have a clue. How many people does he do taxes for?
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