# Timing on Italian vs. US tax payments



## twobbs (Aug 4, 2017)

Sorry about reviving a very old thread, but I didn't see an answer to the following question.

An Italian tax return is due in September of the subsequent year. Payments are due in May and November. Presumably this is in the current tax year? Underpayments accrue confiscatory penalties.

Investment returns in the US are often distributed in December, which last I remember is after November. What is the strategy then for making Italian current-tax-year payments on these returns. Overpay and claim a refund?

Any advice would be greatly appreciated.


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## Bevdeforges (Nov 16, 2007)

I have moved you out into a thread of your own, as I believe this may attract more attention from folks who can help you.

You probably first need to clarify the timing of the Italian tax payment - i.e. whether they are in anticipation of the current year's taxes or to cover the prior year's obligation. (It can work different ways in different countries.)
Cheers,
Bev


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## twobbs (Aug 4, 2017)

As requested, yet me clarify that I'm talking about whether it's necessary to pay Italian current year taxes in May and November (which I assume correspond to estimated taxes in the US) for distributions made in the same year, but after November. Quite frankly, I'm not quite sure I understand how this would work in the US. Suppose you had all your taxable income distributed on December 16th. How would the IRS feel about you paying all your current year estimated tax in the January following and none prior? I'd guess that would be within the law. But in Italy there is no mention of payments in the following year, and the actual return is not due until the subsequent September. So, I'd guess there is stuff I'm not understanding here.

Perhaps the Italian May/November payments are about *prior* year tax liability. Most websites I've seen are unclear on the topic, but it's hard to imagine this could be true ... tax collectors being tax collectors.


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