What Happens If I Forget to Pay My Quarterly Taxes?
If you were to poll self-employed individuals about their tax strategies, you would find that the vast majority pay quarterly taxes, which is financially prudent. While there is an option to pay a lump sum each tax season, doing so is detrimental to the bottom line.
Suppose you are self-employed, own a business, work as an independent contractor, or are a freelancer. In that case, our tax and business lawyers in Monroe, LA are here to protect every cent you make with in-depth, proactive tax planning and preparation.
Recognize the Ramifications of Failing to Pay Quarterly Taxes
It is no secret that preparing and filing taxes for self-employed individuals is more challenging than those for a traditional employee. Many self-employed individuals wonder, “Do I need to pay quarterly taxes?”
Indeed, paying quarterly taxes is in the financial interest of everyone who is self-employed. But quarterly taxes pose financial and bureaucratic challenges. Many business owners and freelancers prefer to sidestep this activity to focus on serving clients.
There is a significant penalty for failing to pay estimated quarterly taxes. Those who fail to pay estimated quarterly taxes are burdened with a punitive end-of-year financial penalty for procrastination.
The penalty hinges on the money made and the number of quarters in which payments or filings were skipped. Your small business may be hit with a tax penalty of several hundred dollars or even several thousand dollars for failing to file and pay estimated quarterly taxes.
If you need help, our law firm in Monroe, LA can help your business meet its quarterly tax payment requirements and more.
Freelancers are not Exempt From the Tax Law
Many people shifted to part-time or side gigs during the pandemic, some of which are online-based.
There is a common misconception that such gigs do not have the same tax burdens and rules as conventional jobs. The truth is those who fail to properly revise their tax withholding to ensure the amount owed face a penalty for underpayment.
Failing to pay estimated quarterly taxes can draw the undesired attention of the IRS and federal government. If you are like most business owners and freelancers in Monroe, LA, you understand the importance of staying under the radar of tax collectors and bureaucrats.
Schedule Your Appointment With Niswanger Law Today
If you missed one or several estimated quarterly tax payments, do not panic. Niswanger Law is at your service. We are here to help you comply with the subtleties of tax law, including estimated quarterly taxes so that you can dedicate all your attention to your work.