The Internal Revenue Service (IRS) has set September 15 as the deadline for taxpayers to make the third estimated tax payment of the year, a requirement the agency says is key to avoiding immediate penalties.
According to the IRS tax calendar, several tax obligations fall due on that date, but the agency highlighted the third estimated tax deposit as the most important for individual filers.
Who must make the payment
The IRS said the payment applies to individual taxpayers, though not to everyone. It is owed by people who earn income during the year without enough federal tax automatically withheld from it.
The agency listed several groups this typically affects, including self-employed workers, people who earn income from their own business, those who receive certain investment income, people with other income that is not sufficiently withheld, and taxpayers whose salary withholding does not cover their full tax liability.
To make the deposit, taxpayers must use Form 1040-ES, which is used to calculate and pay estimated federal income tax on a quarterly basis.
How to make the payment
The IRS said taxpayers can pay for free directly from a bank account using IRS Direct Pay. The agency outlined the steps for doing so.
- Go to the IRS Direct Pay website.
- Select the estimated tax payment option.
- Choose the corresponding tax year.
- Provide the requested identification information.
- Enter bank account details.
- Choose September 15 as the payment date.
- Confirm the payment and keep the confirmation number.
Other obligations due the same day
The IRS calendar lists a number of additional deadlines falling on September 15 for businesses, partnerships and trusts.
Corporations that requested a six-month extension must file Form 1120S for the calendar year, and corporations must also deposit their third estimated tax payment. Partnerships that requested a six-month extension must file Form 1065 for the calendar year, while withholding agents with a six-month extension must file Form 1042.
Partnerships must also file Form 8804 for the calendar year along with any related Forms 8805 if they requested a six-month extension, and must file Form 8813, the quarterly payment voucher, while paying any tax owed. Foreign trusts with a United States owner that requested a six-month extension must file Form 3520-A for the calendar year.
Why the deadline matters
The IRS is the federal agency responsible for collecting taxes and enforcing tax law in the United States. Because the American tax system operates on a pay-as-you-go basis, taxpayers who do not have enough tax withheld from their regular income are required to estimate and pay tax on a quarterly schedule throughout the year rather than in a single payment when they file their annual return.
Missing one of these quarterly deadlines can result in penalties, which is why the IRS publicizes the estimated tax calendar each year alongside the other filing deadlines that fall on the same dates for corporations, partnerships and trusts.
