Business tax question:?
Answer:
Once you reach a certain profit margin, your tax status changes. You are assigned a tax status when you first start paying taxes, I am assuming you are now being required to make an estimated tax payment. The IRS does not want you to owe every year, so if you do, they can then go back and set you up on estimated payments. This is what my husband and I do for our business, it is much easier ~ you will see when it comes time to do year end how much estimated helps. If they want you to make a 3rd quarter payment, then you will probably start paying every quarter. www.irs.gov has plenty of informative forms and such to help you through it. Also I have called them several times and always receive a knowledgeable, nice rep to help me with any questions that I have. Good Luck!
Could be that your business has increased dramatically. You didn't specify whether it was payroll, sales, etc. My guess is whichever it was has went up and now they are going to require you to pay quarterly. Either go to their website www.irs.gov or give them a call at 1-800-829-1040 and ask them directly about it.
The answer depends on the nature of your business. Most individuals in business are required to pay quarterly estimated tax payments much the same as withholding for wage earners. Another possibility would be it you have employees for which you have been withholding Social Security and Medicare payments. Those are required to be paid on a quarterly bases. If you got some type of notice from the IRS it is most likely the late. Not making either if you are required to do so will result in a penalty so you should respond. Even if you are not required to make these payments you need to respond to the notice other wise the IRS will assume you are failing to comply and charge you ar the highest rate possible. It happened to me and I spent 3years getting it resolved. The third possibility would be sales tax if your state has that and your volume of sales has increased to the point that the state wants the money on a quarterly basis.
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