Jerome, a self-employed attorney, is scrambling around to recalculate his estimated 2018 income tax liability, because he needs to mail his third quarter estimated tax payment tomorrow (September 15, 2018). What concept, construct, or doctrine is causing Jerome to scramble?

Question

Quizplus · Accepted Answer

The Pay-As-You-Go Concept requires taxpayers to pay their taxes as they earn or receive income throughout the year, rather than waiting until the end of the year to pay a lump sum. Self-employed taxpayers, like Jerome, must make estimated tax payments quarterly to meet this requirement. Therefore, Jerome is scrambling to recalculate his estimated tax liability because he needs to make his third quarter payment by September 15th.

Jerome, a Self-Employed Attorney, Is Scrambling Around to Recalculate His