Tax contribution question .... short and hopefully easy.

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Tax contribution question .... short and hopefully easy.

Postby fickle » Wed Dec 26, 2012 8:40 pm

I can't find this on the IRS website and both times I called to ask I was informed my wait would be at least 30 minutes. I thought I'd ask the helpful people here.

I have a lot of capital gains to pay taxes on for 2012. The money to cover this is piddling around doing just about nothing, and I'd rather send it NOW.
Will the IRS happily take a check with all pertinent info on it, with a short note on my whys, and credit my SS number? The only voucher I can find on line to send with it is the 1040V you send in with your return (which I would not be sending at this time). The "estimated tax" pages for those self-employed, etc are WILDLY verbose and complex, and I'm talking about a one time payment, not a schedule of them.

Should I send the 1040V or will this confuse them more. I seem to recall doing this once years back, and they happily took my check, but I don't remember details. I think I sent it to the address where one would send a 1040 with a check in it.

Ideas? THanks!
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Re: Tax contribution question .... short and hopefully easy.

Postby livesoft » Wed Dec 26, 2012 8:47 pm

I suggest you look at form 1040ES. I think the due date is January 15th
And a link: http://www.irs.gov/pub/irs-pdf/f1040es.pdf

There is also a web site to transfer payments, but I'll let someone else comment on that.
It's all about short-term opportunistic rebalancing due to a short-term change in one's asset allocation, uh, I mean opportunistic rebalancing, uh I mean rebalancing, uh I mean market timing.
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Re: Tax contribution question .... short and hopefully easy.

Postby JDCPAEsq » Wed Dec 26, 2012 9:03 pm

Don't send the 1040V. That is for the balance due on a return. Send the 1040-ES with your check. You can send it anytime, although I'm not sure why you're so anxious to part with the funds if you don't need to make estimated payments.
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Re: Tax contribution question .... short and hopefully easy.

Postby grabiner » Wed Dec 26, 2012 9:49 pm

fickle wrote:I have a lot of capital gains to pay taxes on for 2012. The money to cover this is piddling around doing just about nothing, and I'd rather send it NOW.
Will the IRS happily take a check with all pertinent info on it, with a short note on my whys, and credit my SS number? The only voucher I can find on line to send with it is the 1040V you send in with your return (which I would not be sending at this time). The "estimated tax" pages for those self-employed, etc are WILDLY verbose and complex, and I'm talking about a one time payment, not a schedule of them.


You can pay any amount you want as estimated tax; if you pay too much, you will get a refund. Form 1040-ES is just for estimating how much tax you owe, so that you can make estimated tax payments which will be close to the correct amount. You don't even file Form 1040-ES with the IRS.
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Re: Tax contribution question .... short and hopefully easy.

Postby JDCPAEsq » Wed Dec 26, 2012 9:52 pm

grabiner wrote:You don't even file Form 1040-ES with the IRS.

Oh yes you do! How else would the IRS know where to credit the deposit? You are required to send the 1040-ES voucher with your check unless you use online payments.
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Re: Tax contribution question .... short and hopefully easy.

Postby grabiner » Wed Dec 26, 2012 11:19 pm

JDCPAEsq wrote:
grabiner wrote:You don't even file Form 1040-ES with the IRS.

Oh yes you do! How else would the IRS know where to credit the deposit? You are required to send the 1040-ES voucher with your check unless you use online payments.
John


But you don't file the calculations, just the voucher; the IRS doesn't care how you decided that you would pay $1000 of estimated tax. (Similarly, you file a W-4 claiming your withholding allowances, but you don't file the worksheet in which you determined how many allowances you were entitled to claim unless the IRS questions your withholding.)

In fact, I had several years when I had a taxable scholarship in which I didn't bother to fill out the 1040-ES to estimate my tax; I paid estimated tax equal to the tax owed in the previous year, knowing that thus would be enough to avoid a penalty, and that I had enough cash in my bank account to pay the tax bill in April.
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