Discussion:Estimated tax due date-What if TP is out of country?
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Discussion Forum Index --> Tax Questions --> Estimated tax due date-What if TP is out of country?
| 25 June 2007 | |
| One of my clients was on vacation mid-June and did not make his 6/15 estimated tax payment (eventhough I gave him plenty of warning). He swears that "someone" told him if you are out of the country on the due date then you get an "out of the country exemption" and your payment is not considered late. I can't find any reference on the IRS website to back this up. Is he correct? | |
Chautauqua (talk|edits) said: | 25 June 2007 |
| No. Have your client ask "someone" to give you a specific citation. It is not fair for your client to ask you to research an improbable fantasy unless he is willing to compensate you for your research time. | |
| 25 June 2007 | |
| That someone is full of stuff :P I believe no such citation exists. Even if it is, it is for special cases. Why don't everyone just take a vacation and avoid estimated tax penalties when it comes up. | |
| 25 June 2007 | |
| The IRS will waive the penalty due to casualty, disaster, or other unusual circumstances. I don't think foreign travel on vacation would qualify. It's hard once a client hears something that's incorrect but to their benefit; to change their mind. We become the bad guy. | |
| 25 June 2007 | |
| The only current authority for a June 15 due date applies to tax returns of expatriates and not estimated tax payments. See Reg. 1.123-1 -- Larry Hess, CPA | Albuquerque, NM | Talk to me | |
| 25 June 2007 | |
| Again there are alot of people as well that file their estimated payments in 4th quarter. Risky, yes but they do. But as for filing because you are out of the country? Yes it works for a 1040 tax return, but not for ES payments....ever hear of online banking??? hehehe | |
Death&Taxes (talk|edits) said: | 26 June 2007 |
| Nothing is going to happen in this circumstance until next Spring when the 2007 return is filed. If you fill in the actual dates of payment on the software, it will compute any potential penalty at that time.
Those who pay all their estimates in the fourth quarter either must be able to show by annualizing that the tax was due then, or pay the interest charge for using Sam's money. It is called a penalty, but in reality it is a loan from the Treasury. Uncle Sam is a cheaper lender than a credit card, but what is ironic is that it is often the people with savings who pull the fourth quarter stunt. When clients call and tell me that they forgot to pay the installment and are two weeks late, they often ask if they should add something extra to cover any charge. I tell them to wait until filing time and I will compute any late charge. | |
