IRS Shuttered, But Fourth Quarter Estimated Tax Payments Still Due

January 15, 2019, marks the due date for the fourth and final estimated tax payment of Tax Year 2018.  Despite the Federal government shutdown that has left the agency closed for the last 24 days the payments are still due.

Estimated tax is the method used to pay tax on income that is not subject to withholding such as self-employment income, interest income, dividends, rents, and alimony received under a pre-2019 divorce decree.  In addition, if you do not elect voluntary withholding, you should make estimated tax payments on other taxable income, such as unemployment compensation and the taxable part of your social security benefits.

Failure to pay estimated tax payments may result in a penalty on your income tax return and is often the root cause of income tax debts.