09/01/2026
Waiting until April to think about taxes is one of the most expensive mistakes a small business owner can make.
The IRS uses a pay as you go system. That means many business owners, freelancers, and independent contractors are expected to make estimated tax payments during the year.
If you wait until tax season, you could owe:
• Penalties
• Interest
• A larger than expected tax bill
Eg: A consultant earns steady income all year but skips quarterly estimated payments.
Even if they pay everything in April, they may still owe an underpayment penalty because the taxes were not paid when the income was earned.
Pro Tip:
• Review your income every quarter.
• Set aside a percentage of every payment for taxes.
• Work with a tax professional to estimate your payments before the due dates.
The IRS generally expects qualifying taxpayers to pay taxes throughout the year instead of waiting until they file their return. This helps reduce penalties and cash flow surprises.
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PGL3 Services | Accounting, Finance, and Business Solutions
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PGL3 Services | Accounting, Finance, and Business Solutions
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