Estimated Taxes

The IRS requires that companies withhold and pay taxes before the end of the year.  This is done by estimating the taxes that you would owe at the end of the year and making scheduled payments throughout the year.

Estimated tax is the method used to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes and awards. You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough.

If you do not pay enough through withholding or estimated tax payments, you may be charged a penalty. If you do not pay enough by the due date of each payment period you may be charged a penalty even if you are due a refund when you file your tax return.

Learn more about estimating taxes from the IRS website.

Who Must Pay Estimated Tax

You must pay estimated tax for 2007 if both of the following apply.

Sole proprietors, partners, Self-employed, and S corporation shareholders - You generally have to make estimated tax payments if you expect to owe tax of $1,000 or more when you file your return.  Use Form 1040-ES, Estimated Tax for Individuals, to figure and pay your estimated tax. For additional information, refer to Publication 505, Tax Withholding and Estimated Tax.

Corporations - You generally have to make estimated tax payments for your corporation if you expect it to owe tax of $500 or more when you file its return.  Use Form 1120-W, Estimated Tax for Corporations, to figure the estimated tax. You must deposit the payments. For additional information, refer to Publication 542, Corporations.

 

Pay Taxes Using EFTPS
(Electronic Federal Tax Payment System)

EFTPS is a tax payment system provided free by the U.S. Department of Treasury. Pay federal taxes electronically - on-line or by phone 24/7. Visit EFTPS to enroll.

Businesses and Individuals can pay all their federal taxes using EFTPS. Individuals can pay their quarterly 1040ES estimated taxes electronically using EFTPS, and they can make payments weekly, monthly, or quarterly as well as schedule payments for the entire year in advance.

IRS EFTPS Website

IRS Resources for Filing Federal Taxes

Visit the IRS website by clicking this link  Filing Federal Taxes to view or download tax forms.

 

Visit the IRS website for IRS Late Filing Information

 

Click here to visit the Corporate Tax Preparation & Filing Service page

 

Accounting Periods and Methods

Deductions

- Business Expenses

- Employee Pay

- Rental Expenses

- Interest

- Taxes

- Insurance

- Costs You Can Deduct or Capitalize

- Amortization

- Depletion

- Business Bad Debts

- Business Use of Your Home

- Travel Entertainment, Gift and Car Expenses

- Residential Property

- Investment Income and Expenses

- Other Expenses

The IRS Depreciation Policy:

-  Depreciation of Property Placed in Service Prior to 1987

-  How to Depreciate Property