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Paying IRS Estimated Taxes One Time Yearly?

Discussion in 'Ask An Owner Operator' started by PE_T, Jul 21, 2019.

  1. Jul 21, 2019 #1
    PE_T

    PE_T Road Train Member

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    For those who decide to pay it at the end of the year, how much did they charge you? 1k?

    Man, I wish I could get my money back for these two quarters, so I can hopefully pay off my trailer this year. Big mistake seeing how it’s likely my trailer finance interest fees are much higher than the IRS penalty fee.
     
    PE_T, Jul 21, 2019
    PE_T, Jul 21, 2019
    #1
    stayinback Thanks this.
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  3. Jul 21, 2019 #2
    stayinback

    stayinback Road Train Member

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    Yeah......Definitely choices as a business person-to make.
    Pay the assets off- The penalty is like $300 for paying once a year

    My CPA told me many moons ago- "You Can have equipment-Or you can Own Assets-We'll Move your Money around good"
     
    stayinback, Jul 21, 2019
    stayinback, Jul 21, 2019
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  4. Jul 21, 2019 #3
    buckmanmike

    buckmanmike Light Load Member

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    I dont see how thats possible. The IRS charges usary fees outlawed in public business. Plus you never ever, want to piss off the IRS.
     
    buckmanmike, Jul 21, 2019
    buckmanmike, Jul 21, 2019
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  5. Jul 21, 2019 #4
    PE_T

    PE_T Road Train Member

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    In my first three years as an independent contractor, I never paid my quarterly taxes, but it was out of ignorance. I never heard a word from the IRS nor did my tax preparer tell me anything. I think they would be really pissed if you own a multi-million dollar business and decided not to pay quarterly.
     
    PE_T, Jul 21, 2019
    PE_T, Jul 21, 2019
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    mhyn and stayinback Thank this.
  7. Jul 21, 2019 #5
    stayinback

    stayinback Road Train Member

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    Yeah- If your just a 1 truck operation grossing a mere $200,000 per year, Your Nobody big in their eyes...
    They want the Owners and CEO's of larger Firms- They like to "hide" their money.
    Of Course- Those businesses have lawyers and top notch CPA's in place cause they know its coming.
     
    stayinback, Jul 21, 2019
    stayinback, Jul 21, 2019
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  8. Jul 21, 2019 #6
    Shotgun94

    Shotgun94 Medium Load Member

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    I may be wrong but even if you pay something per quarter, then you still paid quarterly. So even $100.

    Anyone heard this before
     
    Shotgun94, Jul 21, 2019
    Shotgun94, Jul 21, 2019
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    PE_T Thanks this.
  9. Jul 21, 2019 #7
    PE_T

    PE_T Road Train Member

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    Not exactly.

    “If you didn’t pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax. Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller.”

    Estimated Taxes | Internal Revenue Service
     
    PE_T, Jul 21, 2019
    PE_T, Jul 21, 2019
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  10. Jul 21, 2019 #8
    SoCalRed

    SoCalRed Medium Load Member

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    I was owner operator for 8 years never paid quarterly. Had good accountant so didn't have to pay anything crazy at tax time 10k or less. Don't remember what the penalty was, but it isn't much.
    Just make sure you have the money to pay IRS on April 15th and you'll be fine. I've never been audited.
     
    SoCalRed, Jul 21, 2019
    SoCalRed, Jul 21, 2019
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  11. Jul 22, 2019 #9
    Rideandrepair

    Rideandrepair Road Train Member

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    That’s all it is, a small interest charge, for underpayment, if you owe. I’ve never paid quarterly, only time it was a problem, is when they caught an honest mistake, I owed them $2000. They found it 11 mos later in March, what a disaster, penalty, interest. Turned into almost double original, due to amount of time that had passed.
     
    Rideandrepair, Jul 22, 2019
    Rideandrepair, Jul 22, 2019
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    PE_T Thanks this.
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