Discussion:Apply Refund to cover entire year 2008 estimates
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Discussion Forum Index --> Basic Tax Questions --> Apply Refund to cover entire year 2008 estimates
Discussion Forum Index --> Tax Questions --> Apply Refund to cover entire year 2008 estimates
| February 11, 2008 | |
| Client has a refund due that is larger than what estimates due in 2008 will be. He wants entire years estimates paid and refund just the balance over that.
My question is since the applied payment will be larger than the first quarterly due, will the IRS end up refunding the differnce, or will it be applied as desired? May seem like a simple question, but the only other time I had a client do this, they were refunded the 2nd-4th quarter. | |
| 11 February 2008 | |
| The IRS has no idea what his estimated taxes should be for 2008. They will apply all of it to the first quarter but the other three ES payments do not need to be made - assuming everything stays the same. | |
| 11 February 2008 | |
| Been, you have to tell your software how much to apply and how much to refund. | |
| February 11, 2008 | |
| Thanks for the responses. I am aware of how to tell the software- just did not know if ther were any repercussions since the one other time, most got refunded anyway.
Thanks! | |
Michaelstar (talk|edits) said: | 11 February 2008 |
| Beengel - I have had clients do this many times - nothing to worry about.
I also have clients who only want to make one estimated tax payment and do not want to be bothered with 4 qrtly estimates. They tend to get one with their busy life and forget about the estimates.......... | |
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