A Million Small Businesses Get a Tax Break
The IRS has simplified the deposit rules for small businesses. Beginning January, 2001, certain small businesses will no longer need to make monthly payroll tax deposits.
Under the new rules, small businesses can make their payroll tax payments quarterly if they have less than $2,500 due. This replaces the current $1,000 limit. This will reduce the paperwork and cash flow requirements for about a million small businesses. And when you reduce the filing requirements, you reduce the chance for errors and the resulting penalties by the IRS.
In addition, the quarterly payment can be sent to the IRS with Form 941 instead of being deposited with a financial institution. Businesses with $2,500 or more of employment taxes must still make deposits to an authorized financial institution.
If you would like assistance with your tax planning or filing, please call the CPAs of Kenneth D. Eichner, P.C. We are here to help with all your tax and business concerns.
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