The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice.
It is not possible to determine the number of taxpayers who do not fully understand all of  the requirements to ensure that your quarterly estimated  tax payments, annual tax liability, and filing deadlines have been fulfilled. The tax system for the United States is based on a “pay-as-you-go” expectation. Among the key provisions that affect all of us are:
1. The Department of the Treasury requires that all taxpayers deposit one fourth of their annual income tax liability each quarter;
2. The annual tax liability can be fulfilled in several ways, i.e. payroll withholding from wages, voluntary tax withholding from lump sum payments (sales of investments, withdrawals from retirement plans, etc) or through quarterly estimated tax deposits ( http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Estimated-Taxes and http://www.irs.gov/uac/Newsroom/Six-Tips-on-Making-Estimated-Tax-Payments);
3. IRS Form 2210 is required to be completed and filed if you have not met the quarterly and annual requirements. However, there are “safe harbor rules” and exceptions which could provide you with a waiver (http://www.irs.gov/instructions/i2210/ch01.html#d0e151 ) of the tax penalties and interest;
4. While you may request an automatic six-month waiver of the tax return filing deadline, this waiver does NOT extend the deadline date for the payment of your annual income tax liability.   (more…)