[Hidden-tech] Question re: finances

[Ron Miller]

This is why it pays to have a good accountant to figure out these 
subtleties and to be sure you are not paying too much up front. Everyone 
gets excited about refunds, but refunds mean the government got to play 
with your money instead of you.

The trick is to pay only what you have to at the time the payment is 
due, and to figure that out you (or at least I do) need the help of a 
good accountant.

Ron



Jan Werner wrote:
>   ** Be a Good Dobee and help the group, you must be counted to post .
>   ** Fill out the survey/skills inventory in the member's area.
> 
> 
> This is almost correct.
> 
> You are in theory subject to penalties if at any time during the year 
> the accumulated estimated payment is less than 90% of the amount due at 
> that point (1/4 of the final amount), however, you will escape penalties 
> for underpayment if you have paid at least 1/4 of last year's taxes each 
> quarter and make up any amount due by April 15 of next year, which is 
> the easy way to be safe.
> 
> On the other hand, if your estimates change substantially during the 
> course of the year, you really should adjust your quarterly payments to 
> account for the best expectation at the time each payment is made.
> 
> The IRS won't complain if you pay too much at the beginning of the year 
> and reduce payments later on, because it is their gain. On the other 
> hand, if you start slow and pick up later in the year, you can still 
> avoid penalties for underpayment by demonstrating this on form 2210, 
> although you should keep good records for your receivables, because you 
> can expect the IRS to grumble some before they let you off the hook.
> 
> Jan Werner
> ______________
> 
> Rikk Desgres wrote:
>>    ** Be a Good Dobee and help the group, you must be counted to post .
>>    ** Fill out the survey/skills inventory in the member's area.
>>
>>
>> If you paid $1000 in taxes (not last years estimates but total taxes) 
>> last
>> year you must pay as least $250 each quarter this year even though you 
>> may
>> owe more. In April you pay the difference. Next year you pay 100%/4 
>> each qtr
>> equal to this years total.
>>
>> Rikk
> _______________________________________________
> Hidden-discuss mailing list - home page: http://www.hidden-tech.net
> Hidden-discuss at lists.hidden-tech.net
> 
> You are receiving this because you are on the Hidden-Tech Discussion list.
> If you would like to change your list preferences, Go to the Members   
> page on the Hidden Tech Web site.
> http://www.hidden-tech.net/members
>