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Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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What is the penality for late quarterly payment?

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What is the penality for late quarterly payment?
Hello and thank you for allowing me the opportunity to assist you.
Can you clarify what you are asking about?
A late payment for what?
Customer: replied 3 years ago.

This is in regard to my Federal Income Tax quarterly estimate.

Hi again.

Thank you for clarifying. I will transfer the question to the tax category.
Hi and welcome to Just Answer!
There is no penalty if you pay late your federal income tax quarterly payments.
However - depending on your situation - there might be underpayment penalty.
The federal income tax is a pay-as-you-go tax, which means that tax must be paid as you earn or receive your income during the year. You can either do this through withholding or by making estimated tax payments. If you do not pay your tax through withholding, or do not pay enough tax that way, you might also have to pay estimated taxes. If you did not 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.

Generally, the payments should be made in four equal amounts to avoid a penalty. However, if your income is received unevenly during the year, you may be able to avoid or lower the penalty by annualizing your income and making unequal payments. Use Form 2210 , Underpayment of Estimated Tax by Individuals, Estates, and Trusts, to see if you owe a penalty for underpaying your estimated tax.

In some situations - the penalty may be waived.

Let me know if you need any help.

Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience: Taxes, Immigration, Labor Relations
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