Estimated tax payments for private foundations.
Private foundations that incur an annual excise tax liability of less than $500 are not required to make estimated tax payments. However, if estimated net investment income for the year is expected to increase (e.g., through the sale of appreciated securities), a payment may be necessary.
The first quarter tax payment for calendar-year foundations is due April 15. Generally, certain foundations might consider paying the entire estimated tax due for the year with the first quarter voucher, to avoid the administrative inconvenience of making additional quarterly payments during the year (otherwise due June 15, September 15 and December 15 for calendar-year foundations). Payments must be deposited with a bank authorized to receive Federal tax deposits with a Federal Tax Deposit Coupon (Form 8109 or 8109-B), at a qualified Federal tax depository bank.
From Djane Cornwell, CPA, Louisville, Ky., and Daniel D. Ceko, Esq., Chicago, Ill.
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|Author:||Ceko, Daniel D.|
|Publication:||The Tax Adviser|
|Article Type:||Brief Article|
|Date:||Nov 1, 1992|
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