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If a taxpayer has a balance due, the tax preparer may need to determine if estimated payments will be necessary for the next year. If they are necessary, what steps should the tax preparer take?



Answer :

GinnyAnswer

Final answer:

When a taxpayer has a balance due, the tax preparer may need to determine if estimated payments for the next year are necessary, advising the taxpayer on the proper steps to take.


Explanation:

When a taxpayer has a balance due, the tax preparer may need to determine if estimated payments for the next year are necessary. If estimated payments are necessary, the tax preparer should take the following steps:

  1. Evaluate the taxpayer's income and deductions for the upcoming year to estimate the tax liability.
  2. Calculate the required estimated tax payments based on the estimated tax liability.
  3. Advise the taxpayer on making timely quarterly estimated tax payments to avoid penalties and interest.

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