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My friend asked for help with her taxes as an independent contractor. She apparently talked to her boss who told her that quarterly taxes are optional and you can just pay everything you owe on tax day (???) and that he's been doing it for years because his CPA says it's fine. I'm like 99.99% sure some random CPA in Florida hasn't cracked the tax code and her boss has been an idiot before (he has claimed that there is no difference between STCG and LTCG taxes) but to do my own due diligence, there's no way that that's actually true right? I couldn't find anything that would let you get around quarterly estimated taxes
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Jan 13, 2022 18:22
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| # ¿ Apr 29, 2024 12:59 |
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Well I'm glad I was right in that her boss is just committing tax fraud and hasn't gotten caught yet, because he is absolutely not exempt, he is stating that quarterly taxes are optional and technically you don't have to pay any taxes until the deadline and also there are no penalties for not paying your quarterlies. I just wanted to be sure I wasn't missing anything before I called her an idiot. Side note and totally unrelated (of course), but looks like you have to jump through a lot of hoops to tip off the IRS on someone who is avoiding taxes, which I guess makes sense. Shame because I can't imagine his business is particularly compliant and I know he is paying people cash under the table to avoid taxes.
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Jan 13, 2022 22:49
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Well I mean taking him at face value he's not paying a penalty for paying late, if that's true he is misstating something on his taxes, deliberately or not. The whole crux of his argument is you can just ignore the penalty line as long as you pay in full by the tax deadline and that quarterly payments are optional loans to the IRS. The whole crux of his argument is that it's optional and you don't need to pay any penalties the IRS charges. He's not going to jail but if he's been avoiding paying penalties for a decade I'm betting that's a nice fat back payment he owes
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Jan 13, 2022 23:44
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