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New business- taxes when profit in 2nd Quarter? |
Hello! My business as a sole-proprietor in services was opened 2/2007. It was a loss for that year. From January 1st- March 31st, I had a profit of $200. From April 1st- May 31st, I had a profit of $700. The 2210 is filed with your tax return to determine if you can get out of paying penalties because your income was received later in the year, rather than earlier. If a form 2210 is not filed, then the IRS assumes you made your money equally during the year and would expect an estimated payment in April. |
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