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The IRS and "quarterly" payments

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mywayorcyway

Well-Known Member
Mar 1, 2012
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Before I go on a rant and make a fool of myself, does anyone have an explanation for why the IRS "quarterly" payments aren't done in actual quarters?

1st quarter - Jan-Mar (3 months)
2nd quarter - Apr-May (2 months)
3rd quarter - Jun-Aug (3 months)
4th quarter - Sept-Dec (4 months)

What's going on here? Why don't they do 3-3-3-3?
 
kchacker said:
Before I go on a rant and make a fool of myself, does anyone have an explanation for why the IRS "quarterly" payments aren't done in actual quarters?

1st quarter - Jan-Mar (3 months)
2nd quarter - Apr-May (2 months)
3rd quarter - Jun-Aug (3 months)
4th quarter - Sept-Dec (4 months)

What's going on here? Why don't they do 3-3-3-3?[/QUOTE

https://www.quora.com/Why-is-the-second-quarter-of-estimated-quarterly-taxes-only-two-months

No clue if that is accurate. But basically, the government in the 60s decided to get the 3rd quarter payments before the end of the fiscal year. Why it mattered I know not.
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If I had to guess it would be to be the year end rush. Getting ready for tax returns, 1099's, W2's ect.
 
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The Interweb claims it was a change that came about due to the federal fiscal year beginning October 1st. By bumping Q3 tax deadline up to September the fed can start each fiscal budget year with some more cash already in the coffers. But they can't eff with the Q4 tax deadlines since the vast majority of companies and individuals follow the calendar year as their own fiscal year. Thus...a wonky 2-month Q2 in the eyes of the IRS is left over.

For those of you who pay estimated quarterly taxes, do you actually calculate specific amounts based on how many months have passed for each "quarter"? I've just always taken my previous year's total liability, round down to the nearest good-looking thousand, divide by 4, send that amount to Uncle Sam via Direct Pay at each deadline and call it a day. Precise math hurts my head, and odds are that nobody at the IRS understands math either.

Which brings us back to the most logical final answer:
Walden4Prez said:
**** the IRS
Click to expand...

*Note: This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer.
 
GetAwesome said:
The Interweb claims it was a change that came about due to the federal fiscal year beginning October 1st. By bumping Q3 tax deadline up to September the fed can start each fiscal budget year with some more cash already in the coffers. But they can't eff with the Q4 tax deadlines since the vast majority of companies and individuals follow the calendar year as their own fiscal year. Thus...a wonky 2-month Q2 in the eyes of the IRS is left over.

For those of you who pay estimated quarterly taxes, do you actually calculate specific amounts based on how many months have passed for each "quarter"? I've just always taken my previous year's total liability, round down to the nearest good-looking thousand, divide by 4, send that amount to Uncle Sam via Direct Pay at each deadline and call it a day. Precise math hurts my head, and odds are that nobody at the IRS understands math either.

Which brings us back to the most logical final answer:
Click to expand...


For some clients I calculate 4 equal payments. For others I do a projection each quarter and set the payment accordingly (I do this for my clients that have busy and non busy seasons so they can pay more when they have income coming in and pay less when it's slow).
 
isufbcurt said:
For some clients I calculate 4 equal payments. For others I do a projection each quarter and set the payment accordingly (I do this for my clients that have busy and non busy seasons so they can pay more when they have income coming in and pay less when it's slow).
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Aha, yeah, that does make good sense for more drastic seasonal income fluctuations. Perhaps I should have tried that during unpredictable lean years instead of my Wesley Snipes non-payment "come penalize me, bro" approach. :cool: The penalties weren't bad, but the snail mail paperwork after the fact with extensions and telling the IRS they are incorrect was painstaking.

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GetAwesome said:
The Interweb claims it was a change that came about due to the federal fiscal year beginning October 1st. By bumping Q3 tax deadline up to September the fed can start each fiscal budget year with some more cash already in the coffers. But they can't eff with the Q4 tax deadlines since the vast majority of companies and individuals follow the calendar year as their own fiscal year. Thus...a wonky 2-month Q2 in the eyes of the IRS is left over.

For those of you who pay estimated quarterly taxes, do you actually calculate specific amounts based on how many months have passed for each "quarter"? I've just always taken my previous year's total liability, round down to the nearest good-looking thousand, divide by 4, send that amount to Uncle Sam via Direct Pay at each deadline and call it a day. Precise math hurts my head, and odds are that nobody at the IRS understands math either.

Which brings us back to the most logical final answer:


*Note: This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer.
Click to expand...

I do not do complicated math to figure it out. I tally up my income, deduct my expenses, apply a percentage based on my estimated tax bracket, then send it off. I make sure I have enough paid in and let my accountant deal with it at the beginning of next year.

I don't have a ton of invoices - I get paid once a month by each client, so the numbers are fairly easy for me.
 
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