I know I'm required to make at least one payment every quarter before a certain date, but can I make multiple, smaller payments? Will it cause me any trouble if I do?

The most I could find was:

IRS Direct Pay won't accept more than two payments within a 24-hour period

which only applies to that particular form of payment, but does seem to allow for plenty more than one payment per quarter.

  • A few years ago when owing taxes on my 1040, I made more than one payment per quarter via Direct Pay. That doesn't directly answer your question but seems to indicate that the answer is yes. – RonJohn Sep 3 '19 at 18:39
  • I doubt any tax authority would complain about getting more money. Are you asking about paying, say, two quarters’ worth of taxes in one quarter, or about spreading the single quarter’s worth of taxes over multiple payments? – Lawrence Sep 4 '19 at 1:24
  • You don't actually HAVE to make a payment every quarter, you just need to have the payments keep up with your income. So for instance I might have no income in the 3rd quarter this year (after making payments on income I got the first two quarters), so I would have no need to make a payment. (At least that's my understanding, and what I've actually done for the last couple of decades.) – jamesqf Sep 4 '19 at 3:03
  • @Lawrence I meant spreading what would normally be paid in one payment into multiple, smaller payments. – Shelvacu Sep 5 '19 at 0:18

Yes, you can. I'm not a tax specialist but I send a monthly payment to the IRS for my business.

I've found it has a few benefits:

  1. You write smaller checks vs. paying all at once
  2. You can better understand your business's true profitability
  3. You can make adjustments to your monthly payments if you expect a divergence from your sales estimates
|improve this answer|||||
  • 1
    "You can better understand your business's true profitability". You could transfer that money each month to a "holding pen" savings account, and then from there to the IRS as required. It would allow you to stay liquid longer, though might tempt you to spend it on a hot trade... – RonJohn Sep 4 '19 at 3:51

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.