IRS Publication 505

AAA

DEFINITION of 'IRS Publication 505 '

A document published by the Internal Revenue Service that outlines the process for withholding and estimated tax that individuals must follow in order to pay their taxes. Typically, workers have taxes withheld from their paychecks. Workers who do not have taxes withheld from their income – whether due to employment status or for another reason – will have to pay estimated taxes over the course of the year.

INVESTOPEDIA EXPLAINS 'IRS Publication 505 '

Income tax is not paid like a typical bill for a good or service. Instead of money coming due once a service is performed or good purchased, it is due when income is earned. Taxpayers who do not pay enough tax during the course of the year may wind up paying a penalty for each payment period.

RELATED TERMS
  1. IRS Publication 555

    A document published by the Internal Revenue Service (IRS) that ...
  2. IRS Publication 5 - Your Appeal ...

    A document published by the Internal Revenue Service outlining ...
  3. IRS Publication 15-A - Employer's ...

    A document published by the Internal Revenue Service that provides ...
  4. Income Tax

    A tax that governments impose on financial income generated by ...
  5. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  6. Underpayment Penalty

    A tax penalty enacted on an individual for not paying enough ...
Related Articles
  1. 10 Steps To Tax Preparation
    Taxes

    10 Steps To Tax Preparation

  2. Taxes

    How To Appeal Your IRS Audit

  3. Taxes

    Surviving The IRS Audit

  4. Taxes

    How To Cut Your Alternative Minimum ...

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center