SOURCE: US Tax Professionals

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December 17, 2015 16:12 ET

Vancouver US Tax Accountant Provides Helpful Guidelines on Estimated Tax Payments to the IRS

Vancouver US Tax Accountant Has Posted a Blog Outlining IRS Guidelines for the Pay-As-You-Go System

VANCOUVER, BC--(Marketwired - December 17, 2015) - US Tax Professionals, a Vancouver-based firm that specializes in cross border taxation, has posted a blog relevant to any pay-as-you-go tax payers engaged in business in the US. According to the article, taxpayers who are self-employed, have a part-time business, or are otherwise engaged in a trade or partnership in the US are required to make quartely tax payments over the year. For more information, go to: http://www.us-taxprofessionals.com/wordpress/

For pay as you go tax payers, these quarterly installments must be paid to avoid penalties. Late installments will incur a penalty that is calculated from the time the payment is due to when it is paid. This interest is charged at the Federal rate for underpayments and is not compounded.

To ensure you are in compliance with the IRS, the blog lists five key guidelines and the dates when estimated quarterly payments are due.

Penalties will also be imposed on taxpayers who fail to make adequate estimates. Interest and the fail-to-pay penalty apply to underpayments on taxes due as of April 15 of the return. The penalty is charged from the date the estimated installment is due to when it is paid and is assessed at the same rate of interest charged on missed payments.

An underpayment penalty does not apply if:

  • The tax due after subtracting tax withholdings is less than $1,000
  • The taxpayer was a US citizen or resident and had no tax liability on a 2014 return that covered 12 months

For more information on estimated payments, underpayments, and tax penalties, it is advisable to contact a firm that specializes in Cross Border Taxes for American citizens and businesses in Vancouver, BC.

About the Company

US Tax Professionals provide tax services for dual American and Canadian citizens in Vancouver. Founded in 2013, they specialize in taxation for US citizens and expats, taxation and accounting for business, cross border taxation for US and Canadian citizens, as well as accounting and taxation of alternative investments, including private equity funds and hedge funds.

For more information visit http://www.us-taxprofessionals.com/ or call 778-873-4812.

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