IRS OKs Redesignation of Estimated Payments

The Internal Revenue Service has issued announcement 2001-112, Redesignation of Estimated Tax Payments, which provides relief to corporations that pay estimated income tax payments.

It has come to the attention of the IRS that many corporations will report income substantially less than previously expected because of economic disruptions resulting from the September 11, 2001 terrorist attacks. Some corporations may have already made estimated payments for taxes that will exceed their projected annual income tax liability.

To alleviate the situation of an overpayment of estimated income taxes, the IRS has agreed to allow corporations faced with this overpayment situation to redirect previously paid estimated income tax payments to satisfy obligations of employment taxes and withheld income taxes.

Corporations wishing to redesignate previously-paid estimated income taxes should contact the IRS at its Disaster Relief toll-free telephone number, 1-866-562-5227.

Taxpayers are reminded that any shortfall in estimated taxes due to such a redesignation may result in penalties and interest for underpayment should the corporation fail to meet its estimated income tax obligation by the appropriate due dates.

You may like these other stories...

Federal judge tosses IRS lawsuitsBernie Becker of The Hill reported that a federal judge sided with the IRS on Thursday, tossing out two lawsuits filed against the tax agency over its improper scrutiny of Tea Party groups...
Amidst the dark clouds hovering over the IRS this year—ranging from the lingering Tea Party scandal to other improprieties to damaging budget cuts—at least there's a ray of sunshine in a new report from the...
SEC, Big Four Chinese affiliates make progress in talks over audit documentsMichael Rapoport of the Wall Street Journal reported that the US Securities and Exchange Commission (SEC) and the Chinese affiliates of the Big Four...

Already a member? log in here.

Upcoming CPE Webinars

Oct 30Many Excel users have a love-hate relationship with workbook links.
Nov 5Join CPA thought leader and peer reviewer Rob Cameron and learn ways to improve the outcome of your peer reviews while maximizing the value of your engagement workflow.
Nov 12This webcast presents basic principles of revenue recognition, including new ASU 2014-09 for the contract method. Also, CPAs in industries who want a refresher on revenue accounting standards will benefit.
Nov 18In this session Excel expert David Ringstrom, CPA tackles what to do when bad things happen to good spreadsheets.