Estimated tax advice - missed January deadline (pay, taxes, charge)

[StoneOne]

So, due to a number of distractions this year, I completely missed the January 15 deadline for estimated tax payments. I have a fairly sizable payment to mail, although I will likely still end up owing some in April. I already know that I can get out of the January payment by filing February 1, but I will almost certainly not have the cash to pay my tax bill in full by then.

So, shall I mail this January payment a few days late or shall I skip it altogether and just pay what I owe on April 15?

[user_id]

Mail it now, as far as I know any penalties you may pay will be based on how long you failed to make the payment.

A couple of years ago I mailed a estimated tax payment late, I was never charged any sort of penalty. But it was not a huge sum of money either.

I almost forgot about it this year too though, I ended up mailing it out 10 minutes before the post office closed on 1/15.

[janetvj]

If you've never filed late before the IRS may be inclined to waive the late payment penalty. And since interest accrues starting from the due date until the date paid, the sooner you pay the less you'll pay. I suggest sending the payment and see if you get a bill for penalty and interest. If you do, request a one time abatement and see what happens.

[The Man in SATX]

I mailed late one time and a letter was written to me in what I "could" have been charged for being late. Although I was never charged.. Mail your payment..

[Thepreacherswife]

Even better, for the future register for EFTPS and schedule the payments online in advance.

[TKramar]

You're better off sending it in as soon as you have it, or realize you'd missed a deadline. It's always better to get it to them early than late. You should only have two payments worth of tax to pay this year, if you were to file now...assuming that the estimation of your tax was equal to the actual tax you would have paid. They might have overestimated it, and your April 15th payment would actually be lower.

[StoneOne]

Originally Posted by Thepreacherswife

Even better, for the future register for EFTPS and schedule the payments online in advance.

I would do this, and I hope to be able to do this after another year or so, but given that I'm still in start-up mode, cash flow is still erratic and I fear causing an overdraft by doing this.

[StoneOne]

Thanks everyone. I mailed the payment yesterday. I've resolved to get my taxes done by mid-late March and file then. I'm sure I'll still owe some money, but getting it in earlier will hopefully allow me to avoid any penalties and interest. The only time I've ever been charged extra was last year when I had to set up a payment plan for part of my tax bill that I couldn't pay on time last year. I've always been very erratic with estimated taxes and have never been penalized for this.

[odie91]

Just curious, WHEN do they determine how much interest you owe for the late payment? Technically they won't know until Dec 31, precisely how much tax you owed, am I right?

Originally Posted by user_id

Mail it now, as far as I know any penalties you may pay will be based on how long you failed to make the payment.

[sweetana3]

Worked with the IRS for 31 years approx. I have answered this question hundreds of times.

Pay everything you owe by the due date of the tax return. Calculate the potential estimated tax penalty on the correct form and use all the potential exceptions on the form. Wait to see if the IRS calculates and then if you get a letter, send a letter back giving all the reasons why it should be removed. (such as first time, etc.)

Usually it will work out unless you have a history of penalty already.