I learned today that I must now pay estimated taxes on the income of a trust for which I am trustee. I wrote a check yielding up $500 to the I.R.S. Not sure why I need to pay estimated taxes this year, when I did not have to do so last year, I wrote Craig, the accountant for the trust, for explanation. Here is part of his reply:
[The] trust exceeded the $1,000 mark in total 2013 tax (for the first time since inception)…. Paying the estimates avoids a possible significant penalty.
I thought it might be something like that, some complexity in our beloved tax code that consumes time, postage, paper and so on, all to pay for occupying Iraq, subsidizing Boeing, directing us to burn corn in our car engines rather than eat it, and lots of other important and beneficial activities.
Why do we call those people in Washington “leaders”? We don’t follow them; we endure them, as we endure bad weather and illness.
Thanks for the answer, Craig,
CLARIFICATION and ADDENDUM (June 24): I pay those estimated taxes out of the trust’s assets, not my own. Craig replied in turn as follows:
Could not have said it better! The current government at all levels makes me physically ill. I would gladly give up my practice if they abandoned the IRS and the Internal Revenue Code. It would force me to do something more rewarding. After 35 years of representing clients with the IRS, I have grown a bit cynical and cold. My only saving grace is the people I am blessed to call clients—good, caring citizens.
Keep the faith,