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How Any Business Owner Can Reduce The Likelihood of a Tax Penalty by 31 Times - Articles Surfing
Have you heard the latest version of the age-old story:"The Tale of Two Small Business Owners."
Here it is:
Small Biz Owner #1 is 31 times less likely to be penalizedby the IRS than Small Biz Owner #2.
Hmmm. What gives? What is the difference between these twochaps?
It's simple, really.
Small Biz Owner #1 makes his federal tax payments electronically, using the government's Electronic FederalTax Payment System (aka EFTPS).
Small Biz Owner #2 makes his federal tax payments manually,using good old paper 'n ink to write the check.
Not only that, but for his monthly payroll tax payments,Small Biz Owner #2 has to fill out the little coupon thatcomes in that little yellow coupon book (known as Form8109), write out the check, and then take the time to visithis local bank and make the payment in person.
Because Small Biz Owner #2 is stuck in the rut of themanual check payment routine, he is 31 times more likelyto get hit with a late-payment penalty.
And these late payment penalties are pretty steep:
1 to 5 days late = 2% penalty6 to 15 days late = 5% penalty16 or more days late = 10% penalty
. . .plus interest.
It makes sense, doesn't it? If a task takes less timeand energy to complete, you are more likely to do iton time.
And using EFTPS definitely is easier and faster thanwriting out a check and taking it to the bank.
You simply sit down and make a 5-minute phone call, orvisit the IRS website and input a few numbers.
No fuss, no muss. And you can do it 24 hours a day, 365 daysa year.
I know, I know. Change is painful. You like your routine.
My 3 children like to tell me how "old-fashioned" I am --because of the clothes I wear or the music I listen to.
I hear it all the time:"You're so '20th century', Dad."
Well, I'm hear to tell you . . . making your tax payments with a manual check is soooo "20th century", man.
Get with the times and start using EFTPS.
Not only is it "hip, man" -- but it can also help youavoid a hefty late payment penalty.
One of my clients with a staff of 4 employeesrecently forgot to make one of his monthly federalpayroll tax payments. During my quarterly reviewof his books, I informed him of the missing payment.
On a tax liability of just $2,000, he was now facedwith a $200 penalty. Ouch!
Ready to join the 21st Century, and avoid the painof an unnecessary tax penalty?
Sign up for EFTPS by visiting:http://www.eftps.gov or call (800) 555-4477.
Copyright © 1995 - Photius Coutsoukis (All Rights Reserved).
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