The Internal Revenue Service is reminding small business and self-employed taxpayers of the importance of meeting their tax obligations.
Part of those obligations normally include making quarterly estimated tax payments, the IRS said in a statement.
Individuals, including sole proprietors, partners and S corporation shareholders, may need to pay quarterly installments of estimated tax unless they owe less than $1,000 when they file their tax return or they had no tax liability in the prior year (subject to certain conditions).
Other taxpayers who may need to make estimated payments include someone who:
■ has more than one job but doesn’t have each employer withhold taxes.
■ is self-employed.
■ is an independent contractor.
■ is a representative of a direct-sales or in-home sales company.
■ participates in sharing economy activities where they are not working as employees.
Because the U.S. tax system operates on a pay-as-you-go basis, taxpayers are required, by law, to pay most of their tax liability during the year.