Small businesses and self-employed urged to meet tax obligations

The IRS reminded small business and self-employed taxpayers of meeting their tax obligations, including making quarterly estimated tax payments. Sole proprietors, partners and S corporation shareholders are advised to perform a “Paycheck Checkup” using the Withholding Calculator in order to determine the correct withholding amount and thereby avoid an unexpected year-end tax bill and possibly a penalty. The reminder, part of the “Paycheck Checkup” campaign, comes in light of the 2017 Tax Cut and Jobs Act, which made drastic changes to the tax law.

Further, employees who expect to receive long-term capital gains or qualified dividends, or those who owe self-employment tax, alternative minimum tax or tax on unearned income of minors can access Publication 505 for instructions and worksheets to check whether they should change their withholding or pay the estimated tax. In recent years, the Service saw an uptick in people subject to estimated tax penalties.

The estimated tax payment due dates for the current tax year are April 18, June 15, September 17 and January 15, 2019. Finally, payments can be made electronically using IRS Direct Pay or the Treasury Department’s Electronic Federal Tax Payment System. Other payment options can be found by visiting (IRS News Release, IR-2018-182, September 10, 2018.)

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