Keeping the Tax Underpayment Penalty at Bay
With the 2013 tax year behind you, now is the time to plan appropriately to make sufficient estimated tax payments. An underpayment of estimated tax may apply if you still owe $1,000 or more in additional tax after accounting for withholdings and estimated payments made throughout the year. Remember, to avoid underpayment penalties you are required to prepay either;
* If your income is over $150,000 ($75,000 if married filing separate), you must pay 110% of last year’s tax obligation to be safe from an underpayment penalty.
If you think you will need to make periodic payments to the IRS over the year to avoid the penalty, here are some pointers:
If you have not already done so, please call to help assess your situation.
Please give us a call to discuss these and other profit-boosting ideas for your business.
DiSabatino CPA
Michael DiSabatino
651 Via Alondra Suite 715
Camarillo, CA 93012
Phone: 805-389-7300
ww.sharpcpa.com
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