What happens if you miss an estimated tax payment?

In answer to your question - the IRS computers calculate a small penalty for late payments, which your tax preparer will show you on Form 2210. To answer each of your questions:

Q1: "I have clearly missed the deadline and am wondering if I should just save what I have put aside for taxes and pay it all at once when I pay third quarter's taxes?"

Q1: No, every day that you do not pay causes the penalty to increase a little. If you have the money now, you should pay now. Waiting will only increase penalties. Do not think of the 3rd quarter as a "special" time to pay taxes. Taxes are due continously as you earn them. That's why payroll companies for larger businesses make payments every week.

Q2: "Or should I pay it as soon as possible?"

A2: Yes, and save the date of the check or payment for your tax preparer or computer program when you file taxes next year.

Q3: "Or would it be okay just to continue with my payment plan and pay what I owed this quarter in the 3rd quarter and pay what I owe from the third and fourth quarters in the fourth quarter payment?"

A3: You could, but that drags out the payments and cause a little more interest to accrue. Actually, if you make 4 equal payments - your computer can use an easy worksheet for calculating penalties. If you skip even one payment, your tax program or preparer may have to annualize your income on Form 2210.

In my experience, the penalties are rather small right now. The last few quarters, the interest penalty has been 3%. Below is a link that should help. I don't know the size of your quarterly payment, but if you pay it off now, it should be rather small. Try to pay it off before the end of the month. The IRS works with end-of-month periods for penalty assessment. So it is late from after the due day, through the end of month, then it is late more on the 1st of the next month.

Paying Estimated Taxes Late

Do not panic.

Many people do that. Not the end of the world.

#1 - very important to understand - they are not quarterly payments, they are really 4 installment payments of estimated current year taxes. And the dates are really too confusing. But you'll get used to it.

#2 - file and pay as soon as you can. You will be charged a small penalty amount and interest. However, the good news is that you can always write to the IRS, after you will receive the notice of late payment and amounts due (including notice file numbers, etc) explain your situation, and ask for abatement of penalties. Often, first time is forgiven.

Uneven amounts do not matter, since you probably pay in relation to your earnings.

This Site Might Help You.

RE:

What happens if you miss an estimated tax payment?

This is my first year making estimated tax payments. For the first quarter, I made the payment on time and assumed the second quarter's payment would be due on July 15th (the month after the last month in the quarter). However, I realized today that the due date for the second quarter was...

Dear ashleyns: Look at the instructions for 1040ES on the IRS web site (www.irs.gov). If you get your return filed by Jan 31 you are OK. By missing one payment you may have a penalty calculated for the last payment only. You can also make a payment by credit card through the the IRS system. Look at the Safe Harbor provisions in the 1040ES instructions you may be OK or less than $1000 balance due you're OK. This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provide. Click on my profile to read more. Errol Quinn Enrolled Agent Master Tax Advisor

Relax. You will have no penalty if you pay everything owed in full by 4/15/2014. The 1040ES worksheet tells you what amount is owed for your "estimated" quarterly ES payments. If you are a little late it will not result in a penalty. If you miss a quarterly payment it will not result in a penalty. The slip number is not important as long as your SSN and "2013ES" is listed on your check.

Just go ahead and make the June payment amount ASAP the amount can vary from each payment amount BUT may sure that you do get it done ASAP.

6/17/2013 for the number 2 payment amount and voucher so just a few days late will be OK.

Hope that you find the above enclosed information useful. 06/19/2013

There is a penalty equal to interest at IRS rates on 90% of the underpayment from the due date of the estimated payment to the payment date or the due date of the return whichever is earlier. If the underpayment penalty is trivial not penalty gets assessed.

If you make the Q2 pmt late you'll be charged a penalty. I'd just hold off and include it in your Q3 payment.

if you look at form 2210 you will see how the penalties are applied, it is possible missing the June payment could result in some penalty