QUESTION 10 OF 25

How would you go about calculating estimated taxes for the current year?

Like individuals, companies are required to pay taxes throughout the year. Most individuals, however, have taxes withheld from their paychecks and, if necessary, pay estimated taxes. Companies, on the other hand, need to pay estimated taxes each quarter as that is the only mechanism to pay taxes regularly. At the highest level, estimated taxes for a business are based on forecasted taxable income.

"Quarterly estimated tax payments are a necessary tool to make regular tax payments to the federal and state governments. In order to properly calculate estimated taxes, I would work with the accounting and business planning teams to develop a monthly forecast for the current year. Using this financial forecast, I would then make book-to-tax adjustments to arrive at taxable income. From there, I can calculate the estimated taxes owed. It is important to refresh this calculation each month so that the estimated taxes are always based off the latest information available."

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Tax Analyst Mock Interview

How would you go about calculating estimated taxes for the current year?

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25 Tax Analyst Interview Questions & Answers