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Who does the IRS expect to make estimated tax payments?

On Behalf of | May 22, 2019 | Internal Revenue Service

Paying taxes is something that nearly every Massachusetts resident must do. People who work as employees often have a certain amount of taxes taken out of their checks each pay period in order to help meet that obligation to the IRS and other applicable tax authorities. This often makes matters simple for them since they never see the money and do not have the responsibility of making sure those payments are made.

The issue becomes more complicated for independent contractors, business owners and others who are self-employed. The IRS expects them to handle their tax obligations themselves. This usually means making estimated tax payments periodically during the year. Unless a taxpayer was a U.S. citizen or resident and had no tax liability during the prior year, which included a 12-month period, the agency expects these individuals and entities to pay estimated taxes.

As the IRS has for nearly every other situation, it has a form to estimate how much these periodic payments ought to be. Filling out this form may seem like a simple process, but that is not necessarily the case. If the IRS disagrees with the numbers, trouble could be on the horizon.

Massachusetts individuals and companies required to make estimated tax payments often seek outside assistance with their tax issues in order to avoid future confrontations with the IRS. A tax attorney could help ensure that everything is done correctly and backed up by the appropriate evidence in case the agency has questions. It should be noted that taxpayers do not have to simply take the word of the IRS if a dispute arises. Those who work for the agency are not always right, and taxpayers have the right to question their decisions and otherwise protect themselves.


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