Do You Owe Business Taxes to the IRS in September?

Business taxes and personal taxes are similar in some ways. But one major difference revolves around estimated tax payments to the IRS throughout the year.

When Are Estimated Taxes Due?

In general, small business owners and those who earn self-employment income are on the hook for paying estimated taxes. While you may be able to make these payments on an annual basis, they are traditionally due to Uncle Sam four times per year. The deadlines for estimated taxes fall on January 15th, April 15th, June 15th, and September 15th.

The September deadline is quickly approaching. This particular due date is for estimated tax payments for the third quarter of 2015, covering the beginning of June through the end of August.

Do I Owe Estimated Taxes?

The concept of estimated taxes harkens back to a keyword in this term – estimated. These estimated taxes are levied on small business owners, 1099 independent contract workers, and others who do not have taxes withheld from the income they earn. For that reason, these tax payments made to the IRS are more of an estimation of what a taxpayer would owe rather than a precise amount that would otherwise be withheld from a W-2 paycheck.

The basic group of taxpayers who owe estimated taxes includes those who have income outside of wages or salaries. This includes Schedule C self-employment income, as well as earnings from capital gains, interest, and dividends.

How Do I Make Estimated Tax Payments?

In order to file and pay estimated taxes on a quarterly basis, Form 1040-ES must be submitted to the IRS by each estimated tax deadline. Of course, any money you owe must also be included when filing this tax form.

If you owe estimated taxes this month, they should be in to the IRS on time. Otherwise, you may be required to pay a larger amount when April 15th rolls around. You could also be on the hook for late payment penalties. There are some options on making these quarterly payments all at once every year, but be sure to find out if such options would work for you, or if it makes more sense to pay them each quarter.

To handle your business taxes and other accounting needs, turn to the tax pros at 1-800Accountant. Call 1-800-222-6868 or check out www.1800accountant.com for details.

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