Employers who are strapped for cash shouldn’t refrain from paying their payroll taxes or their state corporate taxes because these are valuable deductions to them in the year that they are made. They should borrow the money that they need to pay off taxes that are due so that they can utilize the deduction as the benefit of the deduction is more valuable than the interest expense. Even if you don’t owe any taxes, the IRS will charge you a monthly penalty of $195 per month per shareholder if you file your taxes late. So if you fail to file a tax return after four months, and you have two partners, even if you don’t owe any tax, you will owe $1,560 in penalties. The IRS may waive the penalty once, but why waste the one time waiver on something that you can prevent?
Posted on 02/21/2013 in News