Recalculating Quarterly Tax Estimates
The change in the tax rates due to recent tax legislation provides a planning opportunity for tax advisers. Taxpayers need to be aware of the impact of the new, slightly lower tax rates, which may have an effect on planning for third and fourth quarterly estimated payments.
New tax tables published July 1 reflect the change in tax rates. Some taxpayers may benefit from a slight reduction in quarterly payments. Other taxpayers need to be made aware of the fact that their existing payment structure is sufficient to protect them from penalties and no change is necessary.
The increase in the child tax credit from $500 to $600 for the year 2001 may also have an effect on planning for quarterly payments.
In either case, the new tax law presents several opportunities for accountants to provide beneficial services to their clients.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.