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 penalized by
the IRS than Small Biz Owner #2.
Hmmm. What gives? What is the difference between these two chaps?
It's simple, really.
Small Biz Owner #1 makes his federal tax payments
electronically, using the government's Electronic Federal Tax
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 that comes in
that little yellow coupon book (known as Form 8109), write out
the check, and then take the time to visit his local bank and
make the payment in person.
Because Small Biz Owner #2 is stuck in the rut of the manual
check payment routine, he is 31 times more likely to get hit
with a late-payment penalty.
And these late payment penalties are pretty steep:
1 to 5 days late = 2% penalty 6 to 15 days late = 5% penalty 16
or more days late = 10% penalty
. . .plus interest.
It makes sense, doesn't it? If a task takes less time and energy
to complete, you are more likely to do it on time.
And using EFTPS definitely is easier and faster than writing out
a check and taking it to the bank.
You simply sit down and make a 5-minute phone call, or visit the
IRS website and input a few numbers.
No fuss, no muss. And you can do it 24 hours a day, 365 days a
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 you avoid a
hefty late payment penalty.
One of my clients with a staff of 4 employees recently forgot to
make one of his monthly federal payroll tax payments. During my
quarterly review of his books, I informed him of the missing
payment.
On a tax liability of just $2,000, he was now faced with a $200
penalty. Ouch!
Ready to join the 21st Century, and avoid the pain of an
unnecessary tax penalty?
Sign up for EFTPS by visiting:
http://www.eftps.gov or call
(800) 555-4477.
About the author:
Wayne M. Davies is author of 3 tax-slashing eBooks for small
business owners and the self-employed. For a free copy of
Wayne's 25-page report, "How To Instantly Double Your
Deductions" visit
http://www.YouSaveOnTaxes.com
