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Advantages and Disadvantages Of A Reverse Mortgage
Copyright 2005 Paul Jesse
Betty and John, are in their mid-seventies and are currently weighing the advantages and disadvantages of a reverse mortgage as a way of freeing up some cash. The couple purchased their home 45 years ago for about...
Email Scam Warnings
Most people online are very familiar with the Nigerian Email Letter Scams. They've victimized thousands over the years and continue to do so. I am certain you've received many in your inbox over the course of your online experience. They are...
How to Choose the Proper Entity for Your Business
First, let me state that I'm not an attorney and the rest of this article is just based on my experiences so I'd advise you to contact John Hyre at www.realestatetaxlaw.com to get some solid, specific advice on your particular situation.
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How To Turn Business Losses Into Cash Flow
When the typical new business operator starts a business, they concentrate on making the business succeed. That is necessary but not the only thing that a business operator should concentrate on. A business depends on cash flow to exist and...
Selling Your Business - A Tool To Reduce Taxes
SELLING YOUR BUSINESS – A TOOL TO REDUCE THE TAX BITE By David M. Kauppi, MBA, CEA, CBI, President Mid Market Capital “I would rather expire at my desk than to sell my business and pay Uncle Sam one dime in taxes.” How many owners that have paid...
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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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| The US government agency responsible for tax collection and tax law enforcement. Includes income tax forms, instructions, and agency publications. |
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| TaxCut Online | H&R Block | Online Taxes, File Taxes Online ... |
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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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| The department that collects state personal income taxes and bank and corporation taxes for the State of California. Access to forms and tax information. |
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| News and information on tax and national insurance, including downloadable leaflets and forms and the latest news on filing tax returns on-line. |
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| State and Local Tax |
| Piper Resources; State Tax Rates and Structure ...Federation of Tax Administrators; State Payroll Taxes Information ...Symmetry Software ... |
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| Tax news and advice from Bankrate.com |
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| Online Tax Advice - Tax Preparation Help - Income Tax Tips |
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| www.marketwatch.com |
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