When a business begins operations, advance payments of estimated federal and possibly state income taxes must be paid.

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When a business begins operations, it may be required to make advance payments of estimated federal and possibly state income taxes if it expects to owe tax of $1,000 or more when its return is filed. This is to ensure that the government receives its tax revenue throughout the year, rather than waiting until the tax return is filed.

When a Business Begins Operations, Advance Payments of Estimated Federal