Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?

To: Rick who wrote (281)	4/26/1998 2:05:00 PM
From: Colin Cody	Read Replies (1) \| Respond to of 1383

The IRS will accept ALL payments submitted on form 1040ES. You could send them in as OFTEN (monthly for example) as you'd like to, with as much $$$ as you'd like to. The THEORY of "quarterly" 1040ES payments is to comply with the MINIMUM requirements and to avoid the underpayment penalties. The flip-side of the argument is WHY send in your money sooner than is absolutely necessary? You might EARN money with that money in your hands, rather than turn it over to the Gov't sooner than you are REQUIRED to do! Some people DO send it in sooner rather than later. They don't want to be bothered with the need to comply with complicated rules to avoid the penalties. I have elderly clients who like to pay ALL their 1998 estimates at once on April 15, 1998. They feel whatever they could have "earned" with that money would have been taxed away at 50% rates (Federal & State) and they'd also need to REMEMBER to find those 1040ES coupons and write checks throughout the year. I know some practitioners mail the coupon to their clients a couple weeks before the due date to make it easier to comply with. But I say what if the taxpayer is away on vacation? The State of AZ has the right idea. NO estimates required for 95% of the individual taxpayers. Just pay it ALL on April 15th!!! OR AZ residents MAY voluntarily pay estimates and not get "hit" with a big bill in April. ------------------------------------------------------------------- Rick, something for YOU to consider. Since you have a "paycheck" you have the OPTION of approaching your payroll dept, say in November, and telling them to INCREASE your Federal Withholding. From say 20% of your Gross to 80% of your gross (i.e. you'd not have much of a net take-home paycheck). You can play "catch-up" for a year's worth of sins this way. So far it is still perfectly legal to play this game. Colin