Failure To Pay Employment Taxes ? Penalties > NetSparsh

Home
>
Tax
>
Failure To Pay Employment Taxes ? Penalties

Failure To Pay Employment Taxes ? Penalties

As an employer, you must pay employment taxes if you have employees. Fail to pay and the IRS will rain all over your parade.

Penalties

If you have employees, you absolutely must deduct and withhold various taxes from the paychecks of your employees. Since you are deducting money from the employee's paycheck, you are handling their funds. This fact is very important to the IRS and it places great emphasis on any failure to deposit employment taxes.

If you fail to pay employment taxes, you will be subject to a 100 percent penalty. Yes, 100 percent. Known as the "trust fund recovery penalty", the penalty is assessed against the person responsible for paying the taxes, not the entity. The person can be the owner, corporate officer or other "responsible person." In short, a business entity is not going to protect you from the wrath of the IRS.

Late Payments

Cash flow crunches are an inevitable event for practically every business. So, what happens if you make a late payment for employment taxes. Unless you can show a reasonable reason for the delay, the IRS is going to penalize you.

Late payment penalties range in amount depending on the delay. If the delay is less than six days, the penalty is two percent. Delay for six to 15 days and you are looking at five percent. More than 15 days in delay is going to push the penalty to 15 percent. If you delay this long, the IRS will be peppering you with penalty notices telling you where you stand.

In Closing

Whatever you do, make sure you deposit employment taxes with the IRS in a timely fashion. Take a moment to think about the worst thing you have ever heard done by the IRS. If you fail to pay employment taxes, the actions taken by the IRS will be ten times worse and you will be the one telling horror stories.

Richard Chapo is with http://www.businesstaxrecovery.com - recovering overpaid taxes for small businesses. Visit our article page - http://www.businesstaxrecovery.com/articles - to read more tax articles.

In The News:

I-T dept exempts about 120 startups from angel tax net LivemintNew Delhi: The income tax (I-T) department has informed about 120 startups that they are exempt from paying taxes on funds raised from angel investors.

4 things you might not know about the new tax law CNBCIf you're having trouble getting a handle on the Tax Cuts and Jobs Act, the overhaul of the U.S. tax code passed in 2017, you're not alone. As many as 8 out of 10 ...

Wanted: A new global tax architecture BusinessLineTax shopping has led to developing nations losing tax revenues. It's time to impose a minimum alternate tax for MNCs.

Which States Made The Most Tax Revenue From Marijuana In 2018? [Infographic] ForbesOut of ten states (plus D.C.) where recreational marijuana is legal, seven currently tax and regulate revenue-producing stores. Last year, some states made ...

US pediatricians call for taxes on sugary sodas QuartzThe US organization representing doctors that care for children is taking a public stand against sugary drinks. The American Academy of Pediatrics this week ...

Investing in PMVVY LIC pension scheme will not help in tax saving Economic TimesWhen it comes to making tax-saving investments, senior citizens should not just focus on tax planning but also funding their retirement through the investment.

Car Rental Taxes | Reforming Rental Car Excise Taxes Tax FoundationState and local governments have used car rental excise taxes to raise revenue, including for projects like stadium construction and amateur sports funding.

On Property Taxes And Local Government Spending, Texas Already Is California ForbesThe Texas Legislature is grappling with its biennial budget negotiations, with Wednesday expected to be a long night in the state's House of Representatives.

You could be paying less in taxes with these 7 strategies AOLHere are some ways to save money on taxes that won't get you in trouble with Uncle Sam.

A Pied-à-Terre Tax Will Bring Revenue New York Needs The New York TimesA tax on second homes of over $5 million won't solve income inequality, but it could help boost the city's coffers.

No country for evaders: This April 1, India enters uncharted tax territory Economic TimesThe taxation scene could change radically as India enters uncharted territory from April 1. On Day 1 of the new financial year, the taxman will begin looking into ...

These seniors can still get a tax break for charitable contributions even if they don’t itemize The Washington PostHere's a tax strategy that can lower the tax bill for some seniors required to take distributions from their retirement plans.

NPS can give you income tax benefit of over Rs 2 lakh; Here is how The Financial ExpressOne can get the tax benefit not only at the time of investment but also on the partial withdrawals made during the tenure and also on the maturity amount at the ...

Planning to file income tax return? Don't forget to get your PAN linked to Aadhaar Business TodayAccording to the Income Tax Department, it is mandatory to link Aadhar card with PAN card before March 31, 2019.

This Short Animation Might Make You Think Twice About Taxes Bitcoin NewsA Bitcoin Cash (BCH) supporter recently noted that the biggest hindrance to cryptocurrency adoption is tax laws and reporting taxes on digital currency usage.

Tax optimiser: Perks, medical cover can help salaried Shah save about Rs 13,000 in tax Economic TimesInstead of relying on the group health cover provided by your employer, buy a separate health insurance for your family. This will cut your tax significantly.

Filing your taxes on paper in 2019: How hard could it be? Yahoo FinanceWhat better way to get over my fear of taxes than to make doing them as hard as possible? That's right, rather than hiring an accountant or using TurboTax, ...

Why this might be the last year you get a big tax refund The Local SwedenOver the next few months, around half of the population of Sweden will receive a tax refund, adding up to an estimated 36 billion kronor.

The Teddy Bear Test, and Other Ways to Pass a State Tax Audit The New York TimesEvery year around this time, people grumble about their tax bills. This year, taxpayers who lost the deduction for state and local taxes in the 2017 tax overhaul ...

These people won't have their taxes ready by April 15 CNBCIf there was ever a year in which you were likely to ask the IRS for more time, this is probably it. Filers have four more weeks to submit their 2018 tax returns and ...

Carbon taxes won’t stop climate change – we need more radical action TheJournal.ieFossil fuels are already taxed to the hilt and people haven't moved to electric vehicles for one simple reason – they cannot afford to, writes Brian O'Boyle.

Need a tax break? Here are accounts that can ease tax burdens during big life transitions USA TODAYHere are 5 key accounts that help lower tax burdens either now or during a life transition, financial experts say.

Faster Tax Cuts Could Be Backfiring on Republicans The New York TimesWhen President Trump signed a large package of tax cuts into law in 2017, the Internal Revenue *Service* moved to make sure the savings showed up quickly in ...

If you hit the $750 million Powerball jackpot, here's your tax bill CNBCRight off the bat, the IRS would get more than $100 million in taxes. You also could count on owing more at tax time.

How to tax the rich, explained Vox.comIt's no accident that the Democratic Party went from wanting a 39.6 percent top tax rate to wanting much more.

Got an IRA? Forget taking this tax break on your 2018 return CNBCOwners of individual retirement accounts used to be able to take a deduction for investment fees paid. Not anymore. The Tax Cuts and Jobs Act did away with ...

Tax saving: Here are Dhirendra Kumar’s 4 favourite ELSS funds Economic TimesThe long-term nature of such investments can well turn out to be a huge retirement corpus, if this is the only investment that you make, said Dhirendra Kumar, ...

WA House Democrats look to tax 'extraordinary profits' to pay for education, mental health CrosscutBudget writers at the state Capitol caught a bit of luck last week: They learned they would have about $860 million in extra revenue to work with as they craft the ...

When big businesses want to fight their property tax bills, Texas law hands them an easy way, critics say The Texas TribuneSupporters of the provision, known as equity appeals, say it's valuable for all property owners, and stops taxing units from imposing unfair taxes.

Masala bond market revives as rupee gains and tax cut lures buyers LivemintMasala bond market is yet to gain traction since its emergence in 2015.The govt in September unveiled a tax break for non-resident buyers of Masala bonds as ...

Mike Trout's $430M contract: Comparing tax bills for California, New Jersey vs. no-income-tax states Fox BusinessLet's take a look at the different potential tax bills the star center fielder can expect, depending on his state of residency.

How Democrats Want to Tax the Rich BloombergDemocrats are leading the 2020 presidential campaign with a slew of tax-the-rich proposals, representing a tone change revealing a party moving to the left.

Viewpoint | Here's when and how you should file a revised tax return Moneycontrol.comAfter uploading the revised return, the taxpayer must ensure that the same is verified properly. Tax return filing process remains incomplete till the time the return ...

Fake invoices to evade GST pose a big challenge, tax officials looking at different strategies to curb menace BusinessLineFaced with the big challenge of tackling fake invoicing in GST regime, tax officials are looking at different strategies to curb this menace and shore up revenue ...

Canon Law Does Not Bind Income Tax Act; Salary Received By Missionaries/ Nuns Subject To Tax Deduction At Source(TDS) : Madras HC [Read Judgment] Live LawCourt held that the salaries were received by them in their individual capacity and that the subsequent surrender of their salaries to the religious institutions can ...

Foreign investors to pay higher taxes starting from April 1 LivemintMumbai: Changes in the Sebi listing and prevention of insider-trading regulations, revisions in the double-taxation avoidance agreements (DTAAs) with ...

CBDT gives 90 startups immunity from Angel Tax Economic TimesIn what will give relief to 90 startups from taxman's questioning their valuation during fund raising rounds and slapping angel tax, the Central Board of Direct ...

Indian tax officials to auction Nirav Modi's art collection today, aims to fetch up to Rs 50 crore Business TodayIndian tax officials will auction 68 modern Indian art paintings, including works by Raja Ravi Varma and VS Gaitonde, that were once part of fugitive jeweller ...

GST Council to issue new tax norms for real estate LivemintNEW DELHI: Federal indirect tax body the Goods and Services Tax (GST) Council will on Tuesday announce new rules on how far builders can make use of ...

When is a company considered a startup and what is angel tax? LivemintAn entity will be considered a startup up to 10 years from the date of its incorporation and registration.An entity will continue to be recognised as a startup if its ...

Blow to I-T department’s year-end tax recovery drive Economic TimesNew Delhi: The income tax department's plans to arm itself with an SC order to boost year-end recoveries have hit a roadblock. The authorities had approached ...

Tax the Rich? Here’s How to Do It (Sensibly) The New York TimesEveryone, it seems, has ideas about new tax strategies, some more realistic than others. The list of tax revolutionaries is long. The short list includes ...

Income tax, statutory claims part of ‘operational debt’ Times of IndiaIndia Business News: Senior lawyers Rajiv Ranjan and Sugam Seth, who had been asked to assist the appellate tribunal, concluded that tax is not related to the ...

Illegal immigration taxes: Unauthorized immigrants pay state taxes Vox.comUndocumented workers paid about $11 billion in state and local taxes, according to a 2017 report by the Institute of Taxation and Economic Policy.

Search 2500 Syracuse properties that could be seized if taxes are not paid syracuse.comThe city issued list of properties that still owe 2017 county property taxes.

Tax queries: Can you claim tax refund on TDS deducted by employer on gratuity? Economic TimesDilip Lakhani Senior Chartered Accountant, answers queries from our readers on income tax and other levies.

6 fixed income investments to help you save tax under section 80C Economic TimesLong-term debt investments should form a part of every investor's portfolio to maintain stability, especially during economic volatility.

IRS Loosens Tax Penalty for Millions Yahoo NewsThe IRS said Friday that because of changes and confusion caused by the new Tax Cuts and Jobs Act, it will penalize fewer taxpayers who didn't withhold ...

Why Americans Don’t Cheat on Their Taxes The AtlanticThe weirdly hopeful story of how the U.S. came to be a leader in tax compliance.

Macau govt studying potential introduction of tourist tax GGRAsiaThe Macao Government Tourism Office is studying the potential for introduction of a tourist tax to the city, said the bureau's head, Maria Helena de Senna ...

5 Things to Know About Cryptocurrency Taxes Before Tax Season CryptoGlobeCryptocurrency taxes, in their current state in the US, aren't exactly a walk in the park. Currently, the Internal Revenue *Service's* (IRS) stance on some ...

Cuomo heads back to Long Island to push for a property tax cap The Real DealGov. Andrew Cuomo headed to Long Island to once more make his case for a permanent cap on property taxes. The governor spoke to state lawmakers in New ...

How much tax can you save via tax saving investments, expenditures? Economic TimesThe amount of tax you can save via tax-saving investments and expenditures depends on the tax bracket you fall in after claiming all the deductions you are ...

Speculation tax declaration deadline fast approaching CityNews VancouverThe deadline for the speculation tax declaration is fast approaching.

Right now is a 'really hard time' for China to introduce a property tax CNBCZhang Xin, chief executive of real estate developer Soho China, said on Saturday that the country's economy is too "soft" for a property tax.

Rising income tax take making households feel poorer and spend less, RBA says ABC NewsThe Reserve Bank says consumer spending is taking a hit in large part because people are handing over a bigger share of their incomes in tax than at any time ...

Taxes 2019: How long should I keep my tax returns? USA TODAYWhen it comes to tax returns, the rule of thumb is to store those suckers for seven years in case the Internal Revenue *Service* or state government has some ...

Lorraine Kelly fans turn on her in wake of tax controversy HeartLorraine hit headlines last week after she won a tax battle over a £1.2million by claiming to be playing a character, rather than herself, on TV.

Last-minute rush for tax saving? You can look at these ELSS funds Economic TimesWith just a few days left of the current financial year, many investors would be searching last minute for investment option under Section 80C to save on their ...

ELSS a great tax saver, pays even when going gets tough: Dhirendra Kumar Economic TimesEven in the worst of times, ELSS has turned out to be a face saver.

Mangaluru: ICICI Bank opens digital tax collection centre for MCC Times of IndiaMANGALURU: ICICI Bank in association with Mangaluru City Corporation (MCC) on Wednesday inaugurated digital tax collection centre to facilitate digita.

7 red flags that could trigger an IRS audit of your taxes USA TODAYNo one wants a visit from the Internal Revenue *Service*. But if you get too generous with your calculations, you may need to back up your tax return.

4 important tax benefits of buying a house jointly Economic TimesBy Homi Mistry Buying a house is a dream for millions of people in India. The government has provided various tax benefits to individuals to encourage them to ...

Powerball jackpot jumps to $625 million. Here's the tax bite if you win CNBCUncle Sam would shave tens of millions of dollars off the windfall before it even reaches the winner, and more would be due at tax time.

How to save income tax via medical expenditures under sections 80D, 80DD, 80DDB, 80U Economic TimesIf you can't afford to pay for health insurance premium or unable to buy one due to pre-existing conditions, then also you can save tax via medical expenditures.

Tax collectors chase rich New Yorkers moving to low-tax states. Auditors inspect cell records, even your dog's vet bills CNBCThe cat-and-mouse game between state tax collectors and wealthy New Yorkers who are moving to Florida has reached new levels — and gone high tech.

If you think your spouse has hidden money secrets, tax returns will show red flags CNBCFew people would voluntarily overpay the IRS by hundreds of thousands of dollars, but one retired accountant did exactly that in a bid to hide money from his ...

NCP promises loan waiver, talks with Pakistan, tax reforms in manifesto Business TodayGiven that the NCP is contesting for very few seats in the 545-member Lok Sabha, one could well question how the party intends to implement its manifesto.

Exclusive: Indian Bitcoin Users in the Dark Over Their Tax Liabilities newsBTCThere is no doubt that India is among the most disoriented country when it comes to bitcoin regulations. When the Reserve Bank of India merely withdrew ...

Tax optimiser: How salaried Kamal can save Rs 40,000 tax via perks, NPS Economic TimesNot only should you ask your employer/company for the NPS benefit, but you should also ask for other tax-free perks like LTA, telephone bill. You can reduce ...

LIC launches a plan with regular and single premium options, 80C tax benefits The Financial ExpressFor the first time, the Life Insurance Corporation (LIC) of India has introduced an endowment insurance plan that has options of paying both regular and single ...

Kansas' new Democratic governor vetoes GOP tax relief bill The Associated PressTOPEKA, Kan. (AP) — Kansas' new Democratic governor on Monday vetoed a tax relief bill approved by the Republican-controlled Legislature, arguing it would ...

Tax queries: Annuity received on a periodic basis is taxable as an income under the head ‘Salaries’ Economic TimesDilip Lakhani Senior Chartered Accountant, answers queries from our readers on income tax and other levies.

AG Barr shrugs off sugar tax to post rise in sales BBC NewsIrn-Bru maker AG Barr shrugged off the sugar tax and other challenges last year to post a rise in sales. Revenue grew by 5.6% to £279m at the ...

Yes, We Need a Green New Deal. Just Not the One Alexandria Ocasio-Cortez Is Offering. The New York TimesYes, of course, we need a Green New Deal to address the world's most urgent crisis, global warming. Just, please, not the one that a flotilla of liberal politicians, ...

Sky Armory: Tax delinquent, but held up as symbol of progress in downtown Syracuse Syracuse.comAbout 300 of Syracuse's top business and government leaders will gather over breakfast Thursday to boast about downtown resurgence in a building that is ...

Americans want the wealthy and corporations to pay more taxes, but are elected officials listening? Brookings InstitutionEconomic inequality is on the rise in the United States and has been for the past 40 years. Prominent Democrats have offered several proposals to curb ...

GST on realty: Builders can choose between two tax rates on incomplete projects LivemintNew Delhi: Builders can now choose between two different tax rates in case of incomplete residential projects, the Goods and Services Tax (GST) Council said ...

Billionaire investor Ron Baron: It's OK for me to pay 50% in taxes — but I could always move to Florida if I didn't want to CNBCBillionaire Ron Baron says capitalism works for people if "they are educated and are able to take advantage of the system."

5 simple tips to save income tax at the eleventh hour Times NowTax saving is a year-long process and not a last-minute activity. However, if you haven't done the needful yet, here are some easy options to go to without having ...

Suze Orman: If you get a tax refund, you're 'making one of the biggest mistakes out there' CNBCFinancial expert Suze Orman says that it's not smart to get a tax refund because you're basically giving the government an interest-free loan. Instead, you should ...

Income tax department in race against time to meet target Economic TimesMUMBAI: The taxman is in for a chase with revenue from income tax (I-T) trailing a stiff target. Tax collection till the third week of February was a little less than Rs ...

A visit to a medical lab or diagnostic centre can help you save tax; here's how Economic TimesThis is a yearly phenomenon that happens at the end of every financial year. All kinds of financial *service* providers - right from banks to insurers to fund houses ...

UK sugar tax weighs on margins at Fevertree Financial TimesThe introduction of a sugar tax in the UK has put pressure on margins at high-end tonic maker Fevertree, even as its revenues continue to soar. The FTSE-listed ...

Time for candidates to disclose their tax returns The Washington PostIt is remarkable, really, that only two of the Democratic presidential candidates have disclosed their tax returns. Given how many are calling for President Trump ...

To tax or not? Govt makes last ditch attempt to save India-US trade package Business StandardLess than a month before the country goes to polls, the government is pushing forward on the proposed India-US trade package to clear pending bilateral issues ...

Mueller report: congressional Trump investigations needed Vox.comLong before it would have occurred to anyone to posit an elaborate conspiracy involving the Trump campaign and the Russian government, the question of what ...

Want to save tax? Here are top 5 investment schemes that you can consider Business StandardOnly a few days are left for the tax-saving season to end. Even if you are late, don't invest in haste. A small mistake can cost you dearly in the future.

Trump's tax cuts will boost the US economy for two more years at most, says Nobel Prize winner CNBCThe United States has been a bright spot among advanced economies, partly thanks to President Donald Trump's $1.5 trillion tax reform. But the boost can't last ...

Show us your property tax statement | NewsCut MPR NewsThe annual NewsCut tradition -- our tenth and last -- is underway with the arrival of your property tax statement, that completely indeciperable calculation that ...

"Loose Papers": Tax Department On Bribery Claim Against BS Yeddyurappa NDTV NewsThe Income Tax Department on Saturday dismissed as a "forgery document" and a "set of loose papers", the ''Yeddyurappa diary'' about alleged bribe payment ...

Karan Johar's Dharma Productions gets a tax relief from High Court - details inside Times NowKaran Johar who heads Dharma Production has been granted tax relief. The HC finally dismissed an appeal filed by the Income Tax department which allowed ...

Washington state vape businesses, customers fear 60% tax Boston 25 NewsThe price of vaping in Washington could soon skyrocket if a proposed 60 percent tax is passed by lawmakers.

Disabled can claim tax saving deductions up to Rs 1.25 lakh under sections 80DD, 80U Economic TimesThe Income Tax Act allows deductions from your gross total income, before the levy of tax, if medical expenditure has been incurred on the treatment of a ...

IMF chief joins calls for big tech firms to pay more tax The GuardianThe managing director of the International Monetary Fund has joined the growing clamour to further tax tech firms Google, Facebook and Amazon as part of a ...

Powerball's jackpot surges to $550 million. Here's what the winner would pay in taxes CNBCRight off the bat, the IRS would shave tens of millions of dollars off the windfall, and more would be due at tax time. And depending where you live, state taxes ...

How to avoid last-minute tax planning mistakes Economic TimesTaxpayers often commit mistakes in a rush to save tax. Here's how to avoid investing errors you might regret later.

B.C. brings in tax credit to help spur liquefied natural gas investment CityNews VancouverVICTORIA — British Columbia is changing the province's tax structure for liquefied natural gas projects, aiming to encourage more development through a ...

Mayoral candidates face off on education, taxes and crime in WGN debate WGN TV ChicagoChicago mayoral candidates Lori Lightfoot and Toni Preckwinkle faced off in a debate hosted by WGN Monday. Watch the debate and post-debate analysis in ...

I need to sell my father's cottage – what tax do I pay? The GuardianQ I recently inherited my father's cottage as sole beneficiary under his will; probate was completed on 7 February 2019. Reluctantly, I have decided to sell the ...

Failure To Pay Employment Taxes ? Penalties

Tax Tax