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Inside This Issue
1. Stay On Top of Employment Tax Obligations
2. Estimated Taxes
3. Deadline Extended for 2007 ATIP Program Participants
4. Tips for Choosing a Tax Preparer
5. Recent IRS Announcements for Small Businesses
1. Stay On Top of Employment Tax Obligations
A quarter or two of un-deposited employment taxes can turn into a cycle
of trying to catch up. Before long the liability is unmanageable.
You might consider making smaller deposits more often. Maybe it would
be easier to make a $200-$500 deposit every couple of weeks than to save
and submit a $2,500 deposit at the end of a quarter. The IRS doesn’t mind
as long as you have the right amount paid by the deposit due dates.
Also, if you aren’t already making your deposits electronically, sign up for
the Electronic Federal Tax Payment System (EFTPS).
Related Links:
• What are FTDs and Why are They Important?
• Headliner 179, Unpaid Trust Fund Taxes Are Serious Business
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2. Estimated Taxes
Estimated tax is the method used to pay tax on income that is not subject
to withholding. Similar to taxes withheld from wages, it is held in trust on
your behalf by the government until you file your return.
If you are self-employed, a sole proprietor, partner, or S corporation
shareholder, you may have to pay estimated tax. Estimated tax is used to
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pay both income tax and s