Behind on Quarterly Taxes? Here’s What You Should Do

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The dreaded quarterly tax payment: it’s an inescapable part of life for small business owners and independent contractors. It’s easy to get in the habit of seeing larger payments with no withdrawals and assuming that money is all yours — but in reality, you should be setting aside a significant chunk of your income for the IRS. Failure to pay your quarterly taxes could result in harsh consequences. Thankfully, it’s not too late to take action if you’ve fallen behind.

When Are Quarterly Taxes Due? Who Owes Them?

A quick refresher: quarterly estimated taxes should be paid by April 15, June 15, September 15, and January 15. You can determine your estimated payment by completing the IRS Estimated Tax Worksheet.

A variety of individuals and companies pay quarterly taxes, including:

  • Sole proprietors
  • Business partners
  • S corporation shareholders

Generally, estimated taxes are required when business owners or independent contractors anticipate owing over $1,000 in federal taxes. Payments can easily be made via the Electronic Federal Tax Payment System (EFTPS).

What Happens If I Don’t Pay My Quarterly Taxes?

If you fail to pay your quarterly taxes on time (or at all), you may be hit with an exorbitant fine come next year’s tax season. Unfortunately, this penalty can be incurred even if you are owed a refund when filing season arrives. Your penalty will depend on how many payments you missed, how late you paid, and the total extent of your tax obligation.

Next Steps: Getting Back On Track

If you missed your first or second quarterly tax payments this year, it’s not too late to get up to speed. Don’t wait for the next deadline to arrive; the sooner you send in your estimated payment, the less you’ll owe later.

Struggling to determine what you owe for quarterly taxes? Or are you worried about late payments? No matter your concerns, you can count on Highland Tax Resolution for assistance. Call us today at 720-398-6088 to learn more about our tax services for small business owners.