When is a taxpayer not required to pay estimate taxes and safely avoid any penalties? According to the IRS tax code, a taxpayer is not required to pay estimated taxes if the taxpayer satisifies three of the following conditions.
1. You had no tax liability for the prior year.
2. You were a U.S. citizen or resident for the whole year.
3. Your prior tax year covered a 12-month period.
The Taxpayer is considered to have no tax liability if the total tax liability in the preceding year was either zero or that the taxpayer was required to file an income tax return based on his income (or lack thereof) consideration. |