Atlanta CPA Teaches Taxpayers How to Avoid Tax Penalties & Interest
I encourage all of my clients to tax plan at least twice annually and to pay all of their total taxes for any given year via payroll withholding so that they do not also have to pay estimated taxes to both the IRS and GA four times a year each. This will make the need to file IRS Form 1040Es and GA Form 500ES not necessary as all of one’s tax liabilities would be paid via payroll withholding.
This has the advantage of not having to write additional checks as well as that the IRS deems these to be paid evenly throughout the year, rather than just when monies are received when made by an estimated tax payment, which can help in precluding per tax law the IRS or GA assessing some of the potential penalties that might be due when making estimated tax payments.
For an S Corporation that files an IRS Form 1120S, all active employee owners are also required to pay a fair and reasonable salary/W-2 given position and profit. It is from this fair and reasonable salary that tax planning should be done on all of an individual’s personal tax issues, including the K-1 that is expected to be received from the business, to ensure that adequate withholding is done to ensure that taxpayers do not unnecessarily have additional assessed penalties and interest.
Please be reminded that both the IRS will assess late penalties and interest, regardless, if enough is not paid in to approximate/pay your full current year liability.
Need Help With Atlanta Tax Problems and IRS Representation?
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John Dillard, CPA of His CPA, PC (An Atlanta Christian CPA firm) 1940 Woods River Lane, Duluth, GA 30097 Phone 770-814-9304 http://www.hiscpa.com/ To retain John Dillard CPA (An Atlanta Christian Speaker/Author) for your business group or church congregation, you can contact him today at 770.814.9304.
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