Why does the taxpayer have to make estimated quarterly payments for tax?
Most taxpayers are required to pay taxes on their earnings every year. If the taxpayer has a job from which she earns a weekly or monthly wage, her employer will do this for her. However, if the taxpayer is self employed, she will have to do it herself. If the taxpayer is self employed, she needs to make estimated payments four times each year. If the taxpayer decides to pay her taxes when her return is due in April she will face fines of not meeting the schedule of the 4 quarterly payments. The taxpayer will probably find it easier to pay four smaller amounts rather than one lump sum. If the taxpayer has a general history of not being able to make payments, the IRS will more than likely demand that she pay the estimated payments. It is in the taxpayer’s best interests to make the four quarterly payments.
