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Old 14th January 2011, 03:51 PM   #1
ChrisHeggem
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Default It May Make More Sense To NOT Pay Your Estimated Taxes...

If you're a business owner the deadline for estimated taxes is due at the beginning of next week, but if you're strapped for cash DO NOT pay with a credit card. According to some insights from The Bottom Line blog, the IRS penalty for paying your estimated taxes late is only at the rate of 3% annually (compared to the over 14% rate of credit cards). For some companies, it might make sense for you to pay off your credit cards this week and take the lower rate from the IRS.

View the full post here: http://bit.ly/i3Ry2q

Don't stress out about estimated taxes this weekend if you feel stuck, but be ready for taxes in April!

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Old 16th January 2011, 07:12 AM   #2
phanio
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That is a solid thought - very financial in nature - take the deal with the least cost (most benefit) to you.
But, when dealing with the IRS - all costs are not that straightforward. While they may only charge you 3% in interest - that does not include their fees (which could double your amount the minute you are late) or the red flags this sends up with them - which could mean a costly audit in the future or their ability to frezze your accounts until you do pay.
Your thinking may be solid - finding the least expensive way of operating for your greatest benefit - but, you might be picking a fight with the wrong organization.

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Old 17th January 2011, 06:51 PM   #3
ChrisHeggem
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Definitely not advocating picking a fight with the IRS, but an interest bit of information just the same. It doesn't make sense for everybody, but it may help those who were going to pay their estimated taxes via credit card just because they didn't have the cash on hand.

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Old 25th January 2011, 07:47 AM   #4
phanio
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Just watch for fees and penalties!

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Old 1st March 2011, 05:38 AM   #5
nathan58
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Default Tax relief

It's really definitely, If you do not pay enough by the due date of each payment period you may be charged a penalty even if you are due a refund when you file your tax return.

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