What happens if i pay quarterly taxes late

Only businesses are subject to payroll taxes, and those can be paid monthly, quarterly or annually depending on the size of the business. Payroll tax returns are filed on a quarterly or annual basis regardless of when the payment is made. Why is this important? The penalties for not filing a tax return are almost always more severe than those for not paying the tax.

There are no real consequences for not filing an estimated tax form itself. Keep in mind that the federal government and various state and local jurisdictions all have different, specific rules in this regard. For purposes of this discussion we will focus on the IRS. Again, these are general rules. A competent tax professional can advise on specific situations. Furthermore, the type of tax involved can result in different types of responses from a taxing agency.

The reason that the IRS is more aggressive with regard to payroll taxes is because they view that money as not belonging to the business but rather as money being held by the business for the IRS because it has been withheld by the business from the employees on behalf of the IRS through payroll deductions and withholdings FICA, FUTA, Federal Withholding.

In effect, businesses are the tax collectors for the IRS, and they are simply holding those funds in trust until paid to the IRS. They should always be withheld, set aside, and used for no other purpose than to be remitted to the IRS on time as prescribed by law. If a taxpayer continues to not pay taxes owed, they run the risk of more serious action such as levying of bank accounts and tax liens on their property.

Dealing with these matters is far more costly and time consuming than simply paying the taxes on time! Typically, the more serious the problem becomes, the more likely professional representation will be required. That sometimes leads us to generalize tax advice. Please reach out via email if you have questions. Get started. Contents Text Link. So, what happens if you miss a quarterly estimated tax payment? Estimated tax payments are typically due on: April 15, June 15, September 15, January 15, The IRS expects you to make your quarterly payments promptly before those dates.

Justin W. Jones, EA. Discover the tax write-offs you've been missing Keeper Tax automatically finds tax deductions among your purchases. Sign up for Tax University Get the tax info they should have taught us in school.

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Company We're hiring! Email Customer Support Affiliate Program. All Rights Reserved. Message sent! Download on. No thanks! I never miss write-offs. Free Tool What tax write-offs can I claim? Freelance designer. Hurricane Ida victims may postpone quarterly estimated tax payments until Jan. To qualify, someone must live in an area designated for individual or public assistance by the Federal Emergency Management Agency. Currently, this includes Louisiana residents, and may also apply to other "taxpayers in Ida-impacted localities.

Moreover, some affected taxpayers may automatically receive penalty relief, provided they have an IRS address of record in a disaster area. Although victims don't need to contact the IRS for relief, they may still receive a late payment notice.

If that happens, the IRS suggests calling the number provided to have the fee waived. Skip Navigation.