My husband has a new business and we greatly underestimated his income for 2017. We owe more in Federal taxes that we can pay. I know we can apply for a payment plan with the IRS. We also have to make the estimated tax payment on 4/17/18 for the 1st quarter of 2018. My question is, my estimated tax payment would make a dent in the 2017 taxes I owe - it wouldn't completely cover it - but should I send this money towards the federal '17 tax bill, and get a payment plan for the remainder. And then save up to pay the estimated taxes and pay them late.
In this case I would be paying two tax payments late - so I am thinking I will pay the estimated tax payment in full, and then apply for a payment plan for the 2017 taxes owed.
Thx
TC
