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Tax Season Tips for Small Business Owners

Before the year ends, small business owners should revisit their estimated tax payments to ensure they have paid enough to cover the income received during the 2021 tax year. The fourth quarter estimated tax payments are due by January 15 so any final amounts should be made by this. When estimated tax payments are made, these count as credits on the tax return similar to W-2 withholdings for those taxpayers that are employees. Based upon how much has been paid during the year, either a refund is given or further amount is due.

The IRS requires individuals, which includes sole proprietors, partners, and S corporation shareholders, to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed. For corporations, the amount is $500 or more.

Disclaimer: This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult a tax, legal and accounting advisors before engaging in any transaction or submitting any IRS form.
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Ramin Mohammad

Ramin Mohammad is a lawyer and CPA with over 15 years of experience including working in audits, teaching, and in big law. Ramin helps clients on both personal and business related tax issues ranging from a multitude of practice areas including tax structuring, planning and cross jurisdictional taxes. His client-base expands throughout the US and overseas offering tax consulting, tax planning and tax preparation.

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