INDIVIDUALS file Form 1040 tax returns, Individual Income Tax Return, annually. Form 1040 tax returns are generally due on April 15th of the following year. Starting for tax year 2005 an automatic six month extension of time to file is available if you file Form 4868 Application for Automatic Extension of Time to File U.S. Income Tax Return by the due date for filing your tax return, usually April 15. Remember, an extension is only an extension of time to file the tax return, not to pay the tax liability.

If you are a W-2 employee, your employer withholds taxes from your pay. If you are withholding at the correct level, one typically does not have any unpaid tax liability at the end of the year. Income from other sources may alter this result.

If you are self-employed, you may have to make estimated tax payments on a quarterly basis. Estimated tax payments are made with Form 1040-ES, Estimated Tax for Individuals. Estimated tax payments are due on April 15th, June 15th, September 15th and January 15th of the following year.

People that are recently self-employed often fall into a trap regarding estimated tax payments. It is very difficult to discipline oneself to make provision for estimated tax payments. Failure to make estimated tax payments often leads to the cycle of not filing tax returns and hiding in fear of the IRS.

If you are self-employed, we recommend the opening of a separate bank account into which regular, small deposits are made in anticipation of your estimated tax payments. We recommend that a small percentage of each self-employment check you receive be placed into the tax account.

If you are self-employed, have unfiled Form 1040 tax returns or unpaid liability, call us.  

We can help. Call us before the IRS calls you! ^®