Discussion:941 Tax deposit rules
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| Revision as of 19:52, 1 September 2009 JR1 (Talk | contribs) (IRS has been pre) ← Previous diff |
Revision as of 22:06, 1 September 2009 Seaside CPA (Talk | contribs) (Agree with JR1.) Next diff → |
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| {{ForumReplyPost|UserID=JR1|Date=September 1, 2009|Text=IRS has been pretty good about waiving these for first time penalties. }} | {{ForumReplyPost|UserID=JR1|Date=September 1, 2009|Text=IRS has been pretty good about waiving these for first time penalties. }} | ||
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| + | {{ForumReplyPost|UserID=Seaside CPA|Date=1 September 2009|Text=Agree with JR1. If this is first penalty, a letter begging forgiveness & stating that things will be handled appropriately going forward may get penalty waived.}} | ||
Revision as of 22:06, 1 September 2009
Discussion Forum Index --> Tax Questions --> 941 Tax deposit rules
| 12 July 2006 | |
| I'd like to know whether the taxpayer is responsible to determine that he's a semi-weekly depositer. IRS ususally send out notices by year end and telling the taxpayers if they're monthly or semi-weekly depositers. I have a client who does his own payroll in-house. He was a semi-weekly depositer for 2005 but he made monthly deposits for that year and he got assessed penalties for late payment of deposits. He says that he never got a notice from IRS in this regard and thus he's not responsible for the penalty.
Please let me know if he's responsible and what alternatives are available to abate the penalties. That you so much for your help. | |
| 12 July 2006 | |
| I've just added an overview page for Publication 15 which includes links to the publication on the IRS website. You can view all other such publication pages by selecting Forms & Pubs from the menu on the Main Page.
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Janakpatel (talk|edits) said: | 14 July 2006 |
| IRS usually sends out notices for deposit schedule changes. If your notice went to the wrong address, you can write a letter with valid proof and ask for waiver of penalty and intrest. It worked for me. | |
Irisheyesrsmiln (talk|edits) said: | 23 April 2008 |
| Good Morning - On December 28, 2008, our payroll tax exceeded $100,000 for the very first time. The money was actually transferred to the bank we use for taxes on that day. However, with the holiday and we normally have a two day due date. The IRS has given us a large penalty and interest charge. I seem to remember reading somewhere that if there is an error made in a change of payment due dates, they will forgive that one time. I sent the IRS detailed information and the response from the IRS, "Errors in judgement not forgiven". | |
Vermontcpa (talk|edits) said: | 1 September 2009 |
| Turkey one owner S-corp client decides they can do 941 and payments all by themselves and avoid my fees. Only taxpayer paid 3 months of liability for Q2 2009 for months apr, may, and jun on 7/17/09 and NOT by the 5/15, 6/15 and 7/15 as they should have been paid. Client now wants help to get penalty abated.
The only employee is the single owner of the s-corp. I believe we could do an amended 941 and move to q3 to avoid issue. What other remedies would be available in this scenario? Turkey to be billed... | |
Actionbsns (talk|edits) said: | 1 September 2009 |
| I don't think I'd amend and put all that payroll into another quarter. If you put it all in Quarter 3, said all payroll was paid on July 1, the taxes aren't due til August 15. I think there's too much tap dancing. And how would you phrase your reasons to amend. Unfortunately, sometimes a client has to learn the hard way that your fees aren't that bad compared to a penalty. Once it's out there on the table like this, with payroll periods identified as Apr May and June, it's hard to go back and change that. | |
Vermontcpa (talk|edits) said: | 1 September 2009 |
| I hear ya on the tap dancing. Outside of amending the 941, is there any avenue/chance for abatement of penalty on this due to taxpayer ignorance or other related reason? | |
Actionbsns (talk|edits) said: | 1 September 2009 |
| Taxpayer ignorance will not get you far with the IRS. I have a client who does wacky things with her payroll because she so dearly wants everything to be black and white in her books, i.e. everything must fit within the month from the first to the last day. You might have to see it to understand that, but anyway, what happens is that often her deposit for the last pay period of the month is a couple of days late and she gets a penalty. I've explained it and explained it to her, but she keeps doing what she does. I can't successfully argue for removal of the penalty for her, and she has tried a couple of times. Each time it falls on deaf ears. How big is the penalty compared to your fee? My best suggestion is to tell the client it's a learning experience and you will be cheaper in the future. | |
Vermontcpa (talk|edits) said: | 1 September 2009 |
| Penalty is approximately $810 and I would have charged $250 for Quarterly payroll tax forms and guidance on amounts for single member s-corp. | |
Mikex2e7n5 (talk|edits) said: | 1 September 2009 |
| I tell my people that the best and simplest way is to make the deposit on the day of payroll. Then no problems | |
| 1 September 2009 | |
| I have my monthly depositors make payroll tax deposited with the last payroll of the month. Two weeks early is better than dealing with the penalties. | |
| September 1, 2009 | |
| IRS has been pretty good about waiving these for first time penalties. | |
Seaside CPA (talk|edits) said: | 1 September 2009 |
| Agree with JR1. If this is first penalty, a letter begging forgiveness & stating that things will be handled appropriately going forward may get penalty waived. | |
