For small businesses, managing payroll can be one of the most arduous tasks. Adding to the burden earlier this year was adjusting income tax withholding based on the new tables issued by the IRS. (Those tables account for changes under the Tax Cuts and Jobs Act.) But it’s crucial not only to withhold the appropriate taxes — including both income tax and employment taxes — but also to remit them on time to the federal government. If you don’t, you, personally, could face harsh penalties. This is true even if your business is an entity that normally shields owners from personal liability, such as a corporation or limited liability company. The 100% penalty Employers must withhold federal income and employment taxes (such as Social Security) as well as...

As posted by Thomson Reuters on 4/11/18 The April 17th deadline arrived this month . . . and sometimes it happens . . . you don’t have the cash to pay the balance due on your return.  You can avoid the Late Filing of Return Penalty if you file an extension (generally, six months).  But the money is still due meaning that the Late Payment of Tax Penalty and Interest come into play.  This Tax Planning Letter reviews methods by which financially distressed taxpayers may be able extend the payment of their income taxes including those outlined in the Table of Contents below: TABLE OF CONTENTS Paying in full within 120 days Installment agreements Offers in compromise Temporarily delaying the collection process PAYING IN FULL WITHIN 120 DAYS A taxpayer can pay the...