New C corp. - Estimated tax payments?


D

DB

New C corp. (Jan. 07). On track to gross over 100K. Are
estimated federal tax payments (quarterly) required in the
first year and if so, how are they figured? (I would prefer
not to pay until years end) Thanks, DB
 
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B

Benjamin Yazersky CPA

DB said:
New C corp. (Jan. 07). On track to gross over 100K. Are
estimated federal tax payments (quarterly) required in the
first year and if so, how are they figured? (I would prefer
not to pay until years end) Thanks, DB
You need to pay estimates to the IRS & the state(s)

Ask your CPA/tax professional to help you with the
calculation from your ytd trial balance.

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V

Victor Roberts

You need to pay estimates to the IRS & the state(s)

Ask your CPA/tax professional to help you with the
calculation from your ytd trial balance.
I hate to disagree with a pro while I am just an amateur :)
but there is no requirement for a C Corp to pay estimated
taxes unless they expect to have profit above some minimal
amount at the end of the year.

Small, personal service C Corporations often operate so they
have very small profit at the end of the year. When a
salary payment is made to the employees of the corporation,
the corporation DOES have to withhold and then deposit
federal and state income taxes, and both the employee and
company share of social security and Medicare and also any
state unemployment taxes. However, these are not estimated
taxes, which are based on the income of the corporation,
which very well might be $0 in spite of the $100K gross.
 
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