It’s never a great experience for clients when they get to the tax return preparation and filing stage of the process only to learn they’ve been underpaying all year. There’s not a single person who likes to pay unnecessary penalties.
Your new flowchart, “Do I Need To Start Making Estimated Federal Income Tax Payments?” is the ideal resource to use as you are collecting your clients’ tax returns for your files. You can use the flowchart to:
- Review withholdings.
- Address estimated payments and withholding amounts.
- Confirm your clients are making timely payments and paying enough if your clients are already making estimated payments.
- Educate your clients about the rules and timing if this is their first year to make estimated payments.
You are in a terrific position to add measurable value to your client relationships; after all, it’s easy to calculate the cost of penalties. Make this flowchart part of your tax return review, and you can be the hero who helps your clients avoid costly surprises.