WASHINGTON, D.C. — The Internal Revenue Service (IRS) has issued a reminder to taxpayers that the deadline for second quarter estimated tax payments is approaching. Payments must be submitted by Monday, June 16, 2025, to avoid potential penalties and ensure compliance with federal tax obligations.
This requirement applies to individuals and entities whose income is not subject to withholding. This includes income streams from self-employment, investments, gig economy work, rental properties, or gains from capital assets. The IRS emphasizes the importance of timely payments to prevent underpayment penalties and financial setbacks.
Who Needs to Pay Estimated Taxes?
According to the IRS, individuals including sole proprietors, partners, and shareholders of S corporations, must make estimated payments if they anticipate a tax liability of $1,000 or more for the year. Similarly, corporations with an expected tax obligation of $500 or more are required to comply.
Gig workers and freelancers who receive income reported via Form 1099-K, as well as those earning from goods, services, and other business activities, are also obligated to pay. These taxpayers should use Form 1099-K in combination with other tax records to accurately report and estimate their tax liability.
The IRS has also directed corporate taxpayers to use electronic funds transfer systems, such as the Electronic Federal Tax Payment System (EFTPS), for all federal tax deposits, including estimated tax payments.
Why Estimated Payments Matter
Timely estimated tax payments are essential for taxpayers to remain current with their obligations and avoid unnecessary penalties. “Paying on time helps taxpayers avoid falling behind on their taxes and possible underpayment penalties,” the IRS noted.
Payment Methods and Options
The IRS highlights several secure and convenient electronic payment methods for meeting the June 16 deadline. Taxpayers can utilize the following options:
- IRS Online Account or Direct Pay with a checking or savings account.
- Credit or debit card payments, which may incur additional fees from payment processors.
- The Electronic Federal Tax Payment System (EFTPS) for fast and reliable transactions.
- The IRS2Go app, which offers mobile payment functionality.
- Check or money order payments, paired with Form 1040-ES, made payable to the “United States Treasury.”
The IRS encourages taxpayers to use electronic methods for their speed and reliability.
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Corporate Compliance
Corporations face specific requirements mandating the use of electronic funds transfers for all federal tax payments, including estimated tax installments. The IRS stresses that this compliance measure ensures accurate and timely processing.
Taxpayers with questions about their estimated tax payments are urged to consult IRS Publication 505, Tax Withholding and Estimated Tax, or speak with a tax professional. With less than two weeks remaining until the deadline, early action can help taxpayers avoid last-minute challenges.
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