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4/15/21 Estimated taxes due today?

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  • 4/15/21 Estimated taxes due today?

    Filing has been extended, but not for estimated taxes I've read. My CPA is a bit lax on turn-around time. I usually have to pay a few thousand in estimated quarterly taxes, is it a big deal if I don't actually pay it today?

  • #2
    Yes, estimated taxes for 2021 Q1 are due today.

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    • #3
      Originally posted by VagabondMD View Post
      Yes, estimated taxes for 2021 Q1 are due today.
      Yep

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      • #4
        If you only have to pay a few thousand in estimated taxes do you or your spouse have a W2 job where you could just withhold more?

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        • #5
          Got mine in the box to be postmarked this afternoon.

          Unlike last year, there's no 3-month grace period.

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          • #6
            they are due today. There are a couple states which have been declared as disaster areas (due to recent storms) which have exceptions for quarter 1. you have to go to IRS website to look . it's basically TX, LA, etc.....

            https://www.irs.gov/newsroom/tax-rel...ter-situations

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            • #7
              I asked my accountant about that yesterday and he said it could wait until May 17

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              • #8
                Originally posted by runfast00 View Post
                I asked my accountant about that yesterday and he said it could wait until May 17
                So did mine. Wonder if it’s because I have W2 and 1099 income and base this years estimates on last year’s figures?

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                • #9
                  Well, both of your accountants are incompetent. I hope they are going to pay your underpayment penalties if they apply and are assessed. The IRS in IR-2021-59 dated March 17, 2021.

                  Explicitly stated that while the 2020 individual tax filing deadline was postponed until 5/17/21. The 1st quarter estimated tax payment deadline remains 4/15/21.

                  As quoted; "This relief does not apply to estimated tax payments that are due on April 15, 2021. These payments are still due on April 15."

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                  • #10
                    I’ll be just a tad more lenient in this one, spiritrider, and hope the accountants meant that the amount was so small, that a 1-mo delay would not hurt them. I actually said this to exactly 1 client this year, but it was for something similar - this doctor hadn’t been able to get tax info in until last minute and still incomplete so I told him that the estimate was due today, but we couldn’t calculate and it wouldn’t make much difference to wait a month and he could send in $10k on the 15th if he wanted and sent the link to pay.

                    Now, fwiw, we send texts and emails to all clients in March providing the deadline to have final info in for us to be able to file (this year, also calc estimate) or we cannot guarantee that we will have time to get to it. If some clients are too busy to do so, I get it (I was too busy for me, too).

                    In the above situations, I can respond to your 2nd sentence that, certainly, we would pay any penalty if a client owed one as a result of anything we had advised. We paid $2k penalties for 2 separate clients last year (yes, $4k) b/c we didn’t send in a partnership extension because they had not signed FPAs for having returns prepared (I hope we all can remember the initial pandemic confusion last year???) Anyway, long story short, we knew they probably were going to sign as they were already personal clients, so we really should have poked them and asked but we literally didn’t think about it, seemed rules were changing every day and we were trying to notify clients, plan for pandemic protection, hoping our team members’ kids were back in school in 2 weeks, etc. Of course, we wrote letters of explanation to the IRS and the 2nd client just got refund check, about 10 mos later, and endorsed it over to us. That was going to be a real ouch of a hit for us, but we were pretty sure the IRS was having to take care of a lot of these issues and that we would get the $$ back.

                    Anyway, it has been a difficult couple of years for CPAs just to keep up with ongoing changes - a few states didn’t comply until near the deadline and a few still haven’t (don’t know exact number) but it deadlines been a moving target for CPAs with clients in multiple states for 2 years in a row. For example, NC complied on tax extension but is (last I saw) charging interest if any balance due is not paid 4/15. So, anyway, I’m inclined to give the CPAs the benefit of the doubt.
                    Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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