tracie
Level 2
12-07-2019
06:40 AM
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If my client does not make the Apr 19 Est Payment (for TY2019) by the due date, but pays all of the required tax for TY19 by the last qrtrly pymnt, will they receive a late penalty?
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TaxGuyBill
Level 15
12-07-2019
06:40 AM
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Probably, yes. The requirement is quarterly (even though they aren't really "quarters"), and if the 'required' payments are not paid by the quarterly due date, the Underpayment of Estimated Tax penalty starts to apply (it is basically just interest, based on how many days the payment was late).
Level 15
12-07-2019
06:40 AM
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they wont "send a late penalty for the Q1 payment ". It would happen on the return next year.
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abctax55
Level 15
12-07-2019
06:40 AM
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tracie
Level 2
12-07-2019
06:40 AM
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are you both saying she would just be assessed the Underpayment Penalty? She does not plan to underpay, just not pay the Q1 payment
Level 10
12-07-2019
06:40 AM
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yes... by not paying the first qtr (or any qtr for that matter), that is by definition "Underpayment"... think about it logically, if there was no penalty....NO ONE would ever make a qtrly estimate
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