Frequently Asked Questions

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When are Personal Estimated Taxes Due?

For personal Federal income taxes, estimated taxes are due in quarterly installments, but not based on quarters.  Generally, personal income taxes are due April 15th, June 15th, September 15th and January 15th the following year.  Please note that the payment you make in January is for the previous year, not the year you make the payment.

For personal California income taxes, estimated taxes are due three installments.  Generally, 30% of your expected income taxes are due April 15th, 40% on June 15th and the remaining 30% on January 15th the following year.  Please note that the payment you make in January is for the previous year, not the year you make the payment.  There is no September payment due.  I’ve heard that this was changed to help California balance it’s June 30th budget problem one year.  

How do I pay my Estimated Taxes?

Federal Payments should be mailed with the 1040-ES payment voucher to:

Internal Revenue Service

PO Box 510000

San Francisco, CA  94151-5100

State payments should be mailed with the 540-ES payment voucher to:

FRANCHISE TAX BOARD

PO BOX 942867

SACRAMENTO CA 94267-0008

Online payments can also be made.  See our “Important Links” page.

How do I get more time to file?

You can file a form 4868 with the Internal Revenue Service any time on or before the due date of the return.  That will extend the due date of your personal return to October 15th.   If you believe you will ultimately owe money when you file, you should pay what your best guess is of what you owe.  You need to have 90% or more of your tax liability paid in by April 15th to avoid penalties.  Filing for an extension extends the amount of time you have to file, but not the amount of time to pay.  Penalties and interest apply for late payments.

The Franchise Tax Board uses Form 3519 for the same purpose.  However, you do not need to file this form for an extension if you are getting a refund.  The Form 3519 is used as a transmittal form for your payment.

You can also obtain an extension online by going to the appropriate link.  See our “Important Links” page.

How do I find out about my refund?

There is a link on our “Important Links” page to help you track down your refund.

What should I do if I have not filed an income tax return for a few years, and I just received a letter in the mail stating that I owe for a year that I have not filed for. Should I pay it?

Not just no, Heck NO! If you have not filed an income tax return, the IRS can and will file one for you. They will base it on all income reported, not including any expenses you may be entitled to.  Further, the State will continue to increase your income and thus your tax until they reach your “uncomfort” level and you end up filing a return.  Your best bet is to file returns for the time period(s) stated as soon as possible, including all income and expenses, and pay whatever tax you owe.  

How far back can I file income tax returns that have not been filed?

Actually, the Statute of Limitations does not start until a return is filed.  You can file as many past years income tax returns as you need to.  Unfortunately, if you are due a refund you can only receive it for three most recent years. 

I think my last preparer made errors on my income tax return. What should I do?

First try and return to your prior tax preparer and see if they will help you to amend your return. If they will not, it will be necessary for you to enlist the help of someone who will.  We can look at the return and see if an amendment is required.

I want to start a new business. I have heard many things about sole proprietorships, LLC's and Corporations. Is one better than another?

Each type of business entity has very specific applications, with no one form fitting every situation.   It is a difficult choice and will require research and time.  In doing your research, ensure you speak to your tax professional to see what kind of tax liabilities are present in each entity and what filings are required.

I received a letter from the government asking for more money.  Should I just pay it?

To repeat an earlier response, not just no, Heck No!  The government issues millions of notices every year.  Many of them are wrong.  But, even if they are correct, you may still be able to get out of some of the penalties that were assessed.  We can take a look at the letter to see if they are correct and perhaps save you some money.