On January 30, 2025, a discussion draft of the Taxpayer Assistance and Service Act (“TAS Act”) was released by Senator Mike Crapo, chairman of the Senate Finance Committee, and Senator Ron Wyden, the Committee’s ranking member. The TAS Act is a broad and sweeping bill aimed at improving tax administration. Of the 68 provisions, about 40 of them reflect legislative recommendations that I’ve made in my current and past Annual Reports to Congress and Purple Books.

In recent blogs, I’ve highlighted many of the TAS Act provisions that, if enacted, will make great improvements in tax administration and help protect and strengthen taxpayer rights. This blog highlights Section 903 of the draft TAS Act, which will make estimated tax payments for individuals due 15 days after the end of each calendar quarter. Currently, these “quarterly” payments are due at three-month, two-month, three-month, and four-month intervals, which is confusing. This commonsense proposal, by imposing the due dates at even intervals, will simplify the requirement and ease the burden for small business owners and the self-employed, including gig workers.

The Current Due Dates are Not Logical

The tax code generally requires that taxes be paid as the taxpayer earns or receives income during the year. For many individuals, this occurs when their employer withholds taxes from their paycheck.

For other individuals, including the self-employed and gig workers, their income is not subject to wage withholding by an employer. These individuals must make estimated tax payments during the year. IRC § 6654 generally requires individuals to make these payments in four installments, due on April 15, June 15, September 15, and January 15. Taxpayers are subject to a failure to pay estimated tax penalty if they miss a deadline for making an estimated tax payment, even if they are ultimately due a refund when they file their Form 1040 for that year.

Taxpayers that fail to make estimated tax payments may avoid the penalty in certain situations such as if they owe less than $1,000 of tax after subtracting withholding and credits, or if they paid the lesser of at least 90 percent of the tax for the current year or 100 percent of the tax shown on their return for the prior year. Taxpayers that receive income unevenly during the year may also lower or avoid the failure to pay estimated tax penalty by annualizing their income.

Section 903 of the TAS Act Standardizes the Due Dates

Estimated tax payments are commonly referred to as “quarterly payments,” but that can be confusing. While taxpayers generally must make four payments during the year, the due dates are not spaced at even three-month intervals that relate to the end of a fiscal quarter. Rather, the first and fourth estimated payments are due on the 15th of the month after the close of the quarter while the second and third are due on the 15th of the month before the close of the quarter.

These due dates are not intuitive and create compliance burdens. Small businesses and the self-employed are far more likely to keep their books based on regular three-month quarters than based on the seemingly random periods prescribed by IRC § 6654. These uneven intervals make it more difficult for many taxpayers to calculate net income and save appropriately to make estimated tax payments, and therefore may reduce compliance. They also cause confusion as taxpayers struggle to remember the due dates.

The solution to this problem is simple. As I recommended in the 2025 Purple Book, Congress should standardize the due dates so they fall on the 15th day after each quarter ends: April 15, July 15, October 15, and January 15. I’m excited to highlight that section 903 of the draft TAS Act does just that.

Conclusion

The TAS Act provides a clear solution to a problem that burdens taxpayers, especially the self-employed and small business owners. I have urged Congress to revise the estimated tax payment deadlines for individuals so they fall at even quarterly intervals. I’m pleased to highlight that section 903 of the draft TAS Act adopts this commonsense recommendation.

Resources

• Crapo, Wyden Issue Discussion Draft to Improve IRS Administration
• NTA 2025 Purple Book Legislative Recommendation #6, Adjust Individual Estimated Tax Payment Deadlines to Occur Quarterly.