Applying joint estimated tax payments when filing separately.Sometimes, a married couple who has filed jointly in the past and made joint estimated income tax payments for the cur cur a derogatory term for a mongrel dog. rent tax year, decides to file separately for the current tax year. The question arises as to how the payments should be allocated between the spouses. The answer is in Regs. Sec. 1.6015(b)-1(b), which provides that when a joint declaration of estimated tax Noun 1. declaration of estimated tax - return required of a taxpayer whose tax withheld from income does not meet the tax liability for the year estimated tax return is made, but a joint return is not filed for the same tax year, the payments may be treated as being made by either spouse or may be divided between them in any manner agreeable to them. If the spouses do not agree to a division, the payments are to be allocated to each of them in the ratio of each's separate tax to the aggregate tax imposed. Example: H's 2004 tax is $6,000 and W's is $14,000; their total joint 2004 estimated tax Federal and state tax laws require a quarterly payment of estimated taxes due from corporations, trusts, estates, non-wage employees, and wage employees with income not subject to withholding. payments were $12,000. Thus, 30% ($6,000/$20,000) of the $12,000 total payment, $3,600, applies to H; 70% ($14,000/$20,0000),$8,400, applies to W. The regulations cited above were issued under former Sec. 6015, Declaration of Estimated Income Tax by Individuals, which was repealed in 1984. Current Sec. 6015 contains the innocent spouse roles.As explained in Chief Counsel Advice (CCA (1) (Common Cryptographic Architecture) Cryptography software from IBM for MVS and DOS applications. (2) (Compatible Communications A ) 2000 11047, the Service has continued to follow the Regs. Sec. 1.6015(b)-1(b) allocation rules; see Bell, 818 FSupp 444 (DC MA 1993), in which the district court held that the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. could use that regulation to allocate estimated tax payments. Recommendations If each spouse's return is prepared by a different firm, it is highly recommended that the spouses and their tax advisers discuss the allocation of the payments and try to reach agreement, to avoid an IRS notice. Statements showing the allocation should be prepared and prominently attached to the returns. If no agreement can be reached, the spouse who made the actual payments should consider attaching an explanatory ex·plan·a·to·ry adj. Serving or intended to explain: an explanatory paragraph. ex·plan statement to the return and providing copies of any documentation (e.g., cancelled checks), showing that the amounts were from bank accounts titled only in the payer's name. FROM JOE MARCHBEIN, CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. , HUBER, RING, HELM & Co., P.C., ST. LOUIS, MO |
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