Estimated Tax Payments. . .help?

Question

I did not make my estimated tax payments this year. If I don't file a return this year, and make all my payments next year, then file for the past 2 years, will that get me over paying any penalty for this year??? If not, is there any way around not paying a penalty.

Answer 1

No it wouldn't. It is best to file this year's return and pay whatever penalties that are there before you accrue more penalties for waiting a year.

Answer 2

No, doing what you propose won't get you out of the penalties. Each year is treated separately. It would cost you even more, since there would also be a failure-to-file penalty added.

And it's too late to make even the last estimated payment now - the deadline was Tuesday of this week.

Just file by April 16, pay what you can, and expect penalties, plus interest.

What's done is done. No, there's no way around the penalties for 2006.

Answer 3

No, there is no way around avoiding the penalty. You should file your return as required for this year and pay when you file. This way you will only be hit with an underpayment penalty. If you don't file, then you will be hit with not just the underpayment penalty, but a late filing penalty and late payment penalty and interest on the taxes you owe.

Answer 4

Trust me. There is no way to get around the penalty. Your best option is to make your final estimated payment for the full amount you think you owe, then file your taxes. There are no shortcuts or loopholes. BTW, the penalty isn't as big as you might think. Mine was $165 last year.

Answer 5

No, you would still be penalized......even more so because now your return would be late. The penalties on not filing a return when you owe can be as high as 50% of the balance due. Not a good idea.

Answer 6

You know it won't. Unless you had big income the penalty likely so small you should not even think about it. Just act instead of thinking things you know aren't true.