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Additional Posts in SALT - State and Local Tax
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This is my favorite bowl ❤️
We made it to 100! High five!
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Partners are required to pay estimated taxes quarterly to federal and state revenue offices. Estimates help with that process as we provide the partner with an estimate of their total income, how much was withheld on them (for states), so the partner knows how they owe.
Certain industries like financial services don’t make quarterly payments because the information isn’t available. In this situation the states usually access a penalty but it’s minimal.
For federal purposes, partnerships generally don't pay any income taxes. The obligation to pay the tax lies at the partner level. For state purposes, many states require the partnership to make withholding payments on behalf of the partners. Depending on the state, this requirement could be quarterly or annually. Some states don't impose any withholding requirement. Some states impose a direct tax on the partnership.
Hate that no one at EY has explained that to you. 😔
Not at Deloitte eithee
Thank god for composite return.