These are called estimated tax payments and you can think of them as a prepayment of your income and self-employment taxes (Medicare and social security). If you’re self-employed, your business probably pays taxes in four sums throughout the year, rather than on one day. Otherwise, you can e-file your return before midnight on your tax filing deadline day. If you’re sending your return via snail mail, the IRS considers your return “on time” if it’s addressed correctly, has enough postage, and is in the mail before the end of business on your filing deadline. Regardless of whether you can pay your small business taxes, it always pays off to file on time. The penalty for late payment is 0.5% of the taxes owed each month compared to 5% for late filing. Even if you successfully apply for an extension, the payment deadlines don’t change.
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