IRS News Release  
October 08, 1993

1993 Tax Payments Required
for New Installment Option

WASHINGTON - The Internal Revenue Service explained today how much individuals must pay to qualify for interest-free installments of part of their 1993 taxes.

The recent tax law set new top marginal rates of 36 and 39.6 percent and gave those affected the option of paying the resulting extra 1993 tax in three annual installments. Taxpayers must pay at least 90 percent of their total 1993 tax, minus two-thirds of the "additional tax" amount, by next April 15. The other two installments are due in 1995 and 1996.

Taxpayers requesting extra time to file their returns must still pay the required amount by April 15. Since the exact tax liability may not be known when the extension is filed, the 90 percent computation issued to determine whether the taxpayer made a reasonable estimate. The IRS uses the same concept in assessing late payment penalties on those requesting extensions.

The election for installment payments must be made on a timely filed, original 1993 tax return. Amended returns and returns filed late are not eligible. The IRS is developing Form 8841, Deferral of Additional 1993 Taxes, for computing and making the installment election.

Notice 93-51, which explains the payment computation, will appear in Internal Revenue Bulletin 1993-33 dated October 25, 1993.

Previous | Next

1993 IRS News Releases | News Releases Main | Home