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Keeping Your Own Money – NOT Handing It Over To The Taxman.
Most people trying to make a crust online (or offline for that matter) are so focused on doing just that, they ignore taking simple steps to ensure that they hang on to just as much of it as they can. Instead, they hand over large lumps of their...
Nine Advance Networking Skills for Seasoned Networkers
A seasoned networker knows the real meaning of networking -- being organized, efficient, effective, and, of course, work the event to its fullest. Attending networking groups after so many years can tire and drain anyone’s excitement. Especially...
Preparing for Your Tax Interview: The “What to Bring” Checklist
Whether you're filing a tax return for the first or 50th time, tax preparation can be a time-intensive process. It can be very stressful too: you want to make sure you do everything correctly and get your return filed on time. The experts at Jackson...
THE “SEVEN Cs”: PARTNERSHIP DANGER SIGNS - The 5th C: Control Issues
A series of articles exploring the seven critical areas that can indicate a partnership is in trouble.
The 5th C: Control Issues
When control is in the picture it is a lose/lose proposition.
First, it is an illusion that anyone can...
WHAT IS THE BEST ENTITY?
It's probably the most frequently-asked question that we hear from entrepreneurs, both experienced and those just getting their feet wet. So, we've put together this report to help you make that selection. Hopefully this information will allow you...
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Failure To Pay Employment Taxes – Penalties
As an employer, you must pay employment taxes if you have employees. Fail to pay and the IRS will rain all over your parade.
Penalties
If you have employees, you absolutely must deduct and withhold various taxes from the paychecks of your employees. Since you are deducting money from the employee’s paycheck, you are handling their funds. This fact is very important to the IRS and it places great emphasis on any failure to deposit employment taxes.
If you fail to pay employment taxes, you will be subject to a 100 percent penalty. Yes, 100 percent. Known as the “trust fund recovery penalty”, the penalty is assessed against the person responsible for paying the taxes, not the entity. The person can be the owner, corporate officer or other “responsible person.” In short, a business entity is not going to protect you from the wrath of the IRS.
Late Payments
Cash flow crunches are an inevitable event for practically every business. So, what happens if you make a late payment for employment taxes. Unless you can show a reasonable
reason for the delay, the IRS is going to penalize you.
Late payment penalties range in amount depending on the delay. If the delay is less than six days, the penalty is two percent. Delay for six to 15 days and you are looking at five percent. More than 15 days in delay is going to push the penalty to 15 percent. If you delay this long, the IRS will be peppering you with penalty notices telling you where you stand.
In Closing
Whatever you do, make sure you deposit employment taxes with the IRS in a timely fashion. Take a moment to think about the worst thing you have ever heard done by the IRS. If you fail to pay employment taxes, the actions taken by the IRS will be ten times worse and you will be the one telling horror stories.
About the Author
Richard Chapo is with Business Tax Recovery - Obtaining tax refunds for small businesses for overpaid taxes. Go to our article section to discover tax strategies and deductions.
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| Welcome to the Vermont Department of Taxes |
| Welcome to the Vermont Department of Taxes... ... Changes to Property Tax Adjustments in 2007 - updated 10/18. - Tax Expenditures Transition Report on ... |
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| Tax news and advice from Bankrate.com |
| Information on all phases of tax planning and preparation. |
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| Online Tax Advice - Tax Preparation Help - Income Tax Tips |
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