[lazide]

Yup - and pay heavy penalties if you don’t (with interest).

The idea that you only owe tax at the end of the year is a fiction the federal gov’t and IRS is more than happy to continue supporting for the majority of tax payers, as it reduces resistance to the income tax. Tools like paycheck withholding were built to support that fiction and lower resistance as well. People fight less when they don’t see the total amount of money they are actually paying in one lump sum. When they get a lump sum ‘payout’ (yearly tax refund), it helps when it is larger and less frequent. They don’t connect the dots that it is their money they’ve been paying into the system every week as easily.

Every business (including all businesses paying out wages, and any receiving 1099 income) need to pay quarterly taxes and pay the IRS. Individuals who need to pay estimated taxes (did not do sufficient withholding), need to do the same.

The yearly tax return is doing the final audit/complete analysis and trueing up any amounts paid for the year, and certifying it. It isn’t when you’re taxes are ‘due’ - rather when they need to be completely correct or else. They actually needed to be paid quarterly.