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...

Boehner addresses GOP priorities ahead of midterm electionsHouse Speaker John Boehner (R-OH) on Thursday delivered what amounted to closing arguments ahead of the November elections, laying out a list of Republican...
As anyone who's ever been through a divorce can attest, the pain of parting with your spouse isn't just emotional—the fallout from divorce can wreak financial havoc as well long after the dust in the courtroom...
Former DOJ Tax Division head Kathryn Keneally joining DLA Piper in New YorkGlobal law firm DLA Piper announced on Thursday that Kathryn Keneally, the former head of the US Justice Department Tax Division, is joining the firm...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.