Monday, May 11, 2015

Estimated Tax payments

A common IRS notice that I have been seeing lately deals with differences in estimated tax payments between the taxpayer and the IRS. Estimated tax payments are due quarterly and I usually will calculate them in advance for the next year when I do the tax return. Sometimes the amounts paid in differ from what I set up or from what the taxpayer remembers when giving me info on the  tax organizer. One way to make certain differences don't come up is to have the estimated tax payments come out automatically from your bank account. I have been doing it this way on my return for years without any problems. The money comes out on the due date and will still be timely, and you don't have to write a check and mail it in. All I need to set up is your bank routing number and account number.

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