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  1. #1
    Join Date
    Nov 2001
    Location
    The South
    Posts
    5,403

    The Taxman Cometh

    So it's that day, April 15th.

    My accountant calls me today (well technically yesterday afternoon Apr 14th).

    "I got some good news and some bad news"
    "ok gimme the good news"
    "You made more money this year than last"
    "well ok that's good now the bad"
    "You didn't pay near enough estimated taxes, you owe a bundle"
    "...."

    So anyone else hate this time of year or is it just me?
    Gary Harris - the artist formerly known as Dixiesys
    resident grumpy redneck

  2. #2
    Join Date
    Apr 2005
    Location
    Atlanta, GA
    Posts
    454
    I think the better question is, who likes this time of the year?
    [color=#666666]Ackoo Solutions, LLC

  3. #3
    Join Date
    Dec 2004
    Location
    Portland, Oregon
    Posts
    395

    Re: The Taxman Cometh

    Originally posted by Dixiesys

    "I got some good news and some bad news"
    "ok gimme the good news"
    "You made more money this year than last"
    "well ok that's good now the bad"
    "You didn't pay near enough estimated taxes, you owe a bundle"
    "...."
    That sounds like the same conversation I had with my accountant.

  4. #4
    Join Date
    Apr 2005
    Location
    WI
    Posts
    16
    Does everyone choose to pay estimated taxes? I was tentatively planning to hold web hosting tax money in the bank until the end of the year and make one big payment once I know exactly how much I owe. Anyone else do this? Are there any downsides to this?

  5. #5
    Join Date
    Aug 2003
    Posts
    175
    Originally posted by poorboy
    Does everyone choose to pay estimated taxes? I was tentatively planning to hold web hosting tax money in the bank until the end of the year and make one big payment once I know exactly how much I owe. Anyone else do this? Are there any downsides to this?
    I do this, but only because it is not worth it to me to pay estimated quarterly tax. I imagine that one day, the IRS will catch on and ask me to pay quarterly, but until then, I am going to carry on this way.

  6. #6
    Join Date
    Nov 2001
    Location
    The South
    Posts
    5,403
    If you don't send in those quarterlies and you owe enough they'll hit you for penalties for (from memory, because they popped me with a $642 penalty in 02 for this very thing) "underpayment or late payment of estimated taxes"
    Gary Harris - the artist formerly known as Dixiesys
    resident grumpy redneck

  7. #7
    Didn't you get hit with something similar a year or two ago? Or am I thinking of someone else? Eitherway...not very exciting news for you - best of luck!

  8. #8
    Join Date
    Jan 2004
    Posts
    7,033

    Re: The Taxman Cometh

    I thought your accountant is suppose to make sure you pay right amount . Maybe you need a new accountant....


    Originally posted by Dixiesys
    So it's that day, April 15th.

    My accountant calls me today (well technically yesterday afternoon Apr 14th).

    "I got some good news and some bad news"
    "ok gimme the good news"
    "You made more money this year than last"
    "well ok that's good now the bad"
    "You didn't pay near enough estimated taxes, you owe a bundle"
    "...."

    So anyone else hate this time of year or is it just me?

  9. #9
    I've been there before. To stop it from happening I had my accountant do a quarterly report on earnings vs. taxes that would be owed. That way at the end of the year if I owed anything it was usually minor, under $500.
    Matt Kelly
    WCiT.net
    Managed and Unmanaged
    Budget VPS, Cloud and Colocation

  10. #10
    Join Date
    Mar 2001
    Posts
    1,434
    Or you can overpay your withholding on your weekly paycheck to replace paying estimated taxes, which simplifies things. If you max your SEP as well, then this works out nicely.

    - John C.

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