elpollo, who is your CPA, I'm interviewing & looking for one who does traders and setting up entities in NY.
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tax question, help please ASAP.
- Thread starter freewilly
- Start date
You can send in a payment now with for 1040-es for
1-15-10.
1-15-10.
Quote from freewilly:
Hi,
I had pretty big gain on trading in 2009. I just heard that I can not wait to file tax return till April 15th, otherwise I will get big penalty.
How do I pay my tax? I looked up IRS webpage, but am still not sure which form I should fill and where I should send my money to. I need to do it ASAP.
Can you point me the links?
Thanks,
freewilly
I'm not a CPA.
That said, the only penalty you will pay is an interest rate on the money you owe. The rate is somewhere around 4 or 5% the last time I checked. The interest is calculated from the time the money is owed and stops the day the IRS receives your check.
I don't know what you mean by "huge" penalty. Maybe a 4-5% annual rate is huge to you, but at least you should keep the penalty in perspective.
If you are making more than that per year, then it may be worth hanging on to your trading capital until the last minute. Only you can do that math.
Quote from Bolimomo:
It depends on when the "big gain" was made on trading in 2009. If you made those gains in Q4 2009, you still have time to file estimated tax without penalty. Deadline for Q4 2009 estimated tax is Jan 15, 2010.
If your gains were throughout the year (Q1, Q2, Q3), you are supposed to make estimated payments throughout 2009. If it is the case, still, you should make your estimated tax payment before Jan 15, 2010 to avoid further interests (penalty).
Don't quote me on this but I think the penalty (interest) is something like 1% per month for the amount of tax owed. I think. The IRS publications have the exact figures.
You have up to April 15, 2010 to file your 2009 tax return (and August 15, 2010 if you apply for an extension). You just can't owe them taxes without penalty.
Use form 1040 ES for your estimated tax payments.
And don't forget the state tax estimated tax (if applicable) too.
The penalty is most decidedly NOT 1% per month.
It's less than half that.
Now, the state of CT (for example) charges 1% per month. But, not the Feds.