5 Ways to Save Penalties and Interest

End of Second Quarter!

I hope you all had a happy and safe Independence Day.  In the numbers world, this means that the year is half over.   Here are a few ways to keep your money in your pocket.  Yes, I know it seems weird but sending money to Uncle Sam (or his cousin at the state level) will help you save money.  Making sure that these payments are on time will save you penalties and interest in the event that you owe either payroll or income taxes at the end of the year.

  1. Send in your federal estimated payments on time.
  2. If your payment is more than $2500, make sure to use the EFTPS system to avoid a penalty.
  3. If you are an S-Corp, make sure you are filing your payroll reports. Second quarter reports are due by the end of July.
  4. DO NOT forget your state taxes. If you live in a state with state income tax, make sure you send an estimated payment to them as well.
  5. Last but not least, REVIEW your books for the year. Now is a good time to see where you are at, project your income and expenses for the remainder of the year, and plan for your final tax filings.  It is also a good time to meet with your accountant and make some of those plans.  If you don’t have an accountant, now is a good time to find one.

For questions or suggestions email me jennifer@implextax.com

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