NOTICE: THE CPANET FORUM HAS MOVED!!!
PLEASE VISIT THE NEW FORUM AT: HTTP://CPAFORUM.CPANET.COM/
this forum will remain available for archive purposes only. SEE YOU AT THE NEW FORUM!!

  Active TopicsActive Topics  Display List of Forum MembersMemberlist  Search The ForumSearch  HelpHelp
  RegisterRegister  LoginLogin
REG - Regulation (Forum Locked Forum Locked)
 CPAnet Forum : REG - Regulation
Subject Topic: Becker R2 Question -04751 (Topic Closed Topic Closed) Post ReplyPost New Topic
  
Author
Message << Prev Topic | Next Topic >>
manes86
Contributor
Contributor


Joined: 09 Jul 2008
Location: United States
Online Status: Offline
Posts: 56
Posted: 10 Jul 2008 at 21:41 | IP Logged  

In this question I am confused about the part of the solution that claims the seasonal method is not permitted.  If I understand correctly, the rule is that estimated tax payments can be made via: (1) 90% of current year's tax or (2) 100% of prior year's tax.  However, if AGI exceeds $150,000 then #2 is replaced with 110% of prior year's tax.

I'm not exactly sure that I understand the definintion of "seasonal method", which is probably what is confusing me.

Please help me where I am lost. Thanks!!

 

A CPA's adjusted gross income (AGI) for the preceding 12-month tax year exceeds $150,000. Which of the following methods is (are) available to the CPA to compute the required annual payment of estimated tax for the current year in order to make timely estimated tax payments and avoid the underpayment of estimated tax penalty?

I. The annualization method.
II. The seasonal method.

A. I Only
B. II Only
C. Both I and II
D. Neither I nor II

 

Answer:

Choice "a" is correct. In computing the amount of estimated payments due, an individual taxpayer may choose between the annualized method (90% of current year's tax), or the prior year method (100% of last year's tax) unless the taxpayer's adjusted gross income exceeds $150,000 then they must use 110% of last year's tax. Therefore, the taxpayer in this example can use the annualized method. The seasonal method is not permitted.

Choices "b", "c", and "d" are incorrect per the above explanation.

 

Back to Top View manes86's Profile Search for other posts by manes86
 
garcian1
Regular
Regular


Joined: 05 Jun 2008
Online Status: Offline
Posts: 65
Posted: 11 Jul 2008 at 01:00 | IP Logged  

I'm using Gleim and haven't seen any questions (yet) that mentions the seasonal method. It only mentions the annualized method and the prior year method. Is the seasonal method still applicable in some cases?

__________________
garcian1
Back to Top View garcian1's Profile Search for other posts by garcian1
 



Sorry, you can NOT post a reply.
This forum has been locked by a forum administrator.


  Post ReplyPost New Topic
Printable version Printable version

Forum Jump
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot delete your posts in this forum
You cannot edit your posts in this forum
You cannot create polls in this forum
You cannot vote in polls in this forum

Powered by Web Wiz Forums version 7.9
Copyright ©2001-2010 Web Wiz Guide

This page was generated in 0.2188 seconds.

Copyright 1996-2010 CPAnet/MizWeb Communities All Rights Reserved
Twitter
|Facebook | CPA Links |CPA Exam Club | About | Contact | Newsletter | Advertise & Promote|Expanded Listings