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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12015
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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When does the IRS require that I change from a quarterly to

Customer Question

When does the IRS require that I change from a quarterly to monthly depositor? I know now that total withholding for this quarter will exceed $2500. But, do I have to switch mid-quarter? Or can I just wait until after I file this quarter to switch to monthly?
Submitted: 2 years ago.
Category: Tax
Expert:  Lane replied 2 years ago.
Hi,Liability of $2,500 or more: Unless you are eligible to make payments with your return, you must deposit your taxes. If you are a Form 941 filer and you are not sure your total tax liability for the current quarter will be less than $2,500, (and your liability for the preceding quarter was not less than $2,500), make deposits using the semiweekly or monthly rules so you won't be subject to failure-to-deposit penalties.
Expert:  Lane replied 2 years ago.
SO, as you cen see, your safe bet is start doing monthly right awa (at the beginning of the next month
Expert:  Lane replied 2 years ago.
Here's the IRS guidance on this ... Start reading at the 4th paragraphhttp://www.irs.gov/taxtopics/tc757.html
Expert:  Lane replied 2 years ago.
Please let me know if you have any questions at all ... Lane
Expert:  Lane replied 2 years ago.
Hi,
I’ve moved us to the Q&A mode so JustAnswer won’t charge you for more Chat time.
Please let me know if you need more here.
Lane

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