- quote -

Thanks to all that replied.

Your comment, Barney, that there is no penalty assessed
until the tax return is filed answered my question.

Now that we know that no penalties are assessed for missing
the voucher deadline, we are going to send $200.00. Although
my friend is fully aware that no taxes are required since
the projected amount due is below the $1000-due limit, he
wants to send some money in since if the money is "sitting
around" he will probably spend it and not have any money
left when the taxes are due!

Thanks again.

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Patrick wrote:

- quote -

To cut to the case, your friend may now simply disregard
any other estimated payments and pay next year. UNLESS, of
course, he goes back to work and the situation changes.

Cheer$,
Harlan Lunsford, EA in LA

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Greetings,

A friend of mine (who worked for wages and briefly as
self-employed) received his 1040ES 2003 Estimated Tax form.
He send in his first voucher payment in March 2003.

Since then he has been laid off/totally unemployed and is
receiving unemployement. Thus his estimated earnings
--including unemployment--have dropped considerably.

Taking into account the reduced earnings and the amount he
sent in March, he, as of today, owes only about $400.00 in
taxes for 2003. (This is the full amount he ows, not the 90%
computation.) In other words, he now owes far less than
$1000.

Even though he is not required to send anything in, he wants
to send in about $200.00 now and another $200 in September
so that he will not have to pay the full $400.00 when he
files his tax return in 2004.

He was going to send in a check for $200.00 today but
noticed that the 1040ES 2003 Estimated Tax voucher deadline
states "due June 16, 2003."

Can he still use the Payment Voucher 2 to send the money in
even though the June 16, 2003 deadline has passed? Will IRS
automatically assess a penalty for late voucher filing?

If that is not the appropriate form to use (since no money
is required to be sent in), what form should he use? How can
he send the money to IRS now?

Thanks!

Pat

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