Because tax laws are constantly changing, it’s no wonder individuals and business owners are struggling to keep up. Between Federal, State, and Employment rules, how does everyone deal with it?
Around this time of year, business owners will be receiving a Federal Tax Notice from the Internal Revenue Service (IRS). This new notice, called IRS Notice CP 136, is NOT a bill! (We repeat… This Is Not A Bill!) The purpose of this notice is simply to inform you of what your deposit requirements will be for the next year based on your prior tax liability. These deposits are controlled by what you (or your trusty accountants at Terranova & Associates) filled out in Form 941—what tax payments your business has made between September 30, 2018 and June 30, 2019. Depending on your tax liability, you will either be assigned as a semi-weekly depositor or a monthly depositor.
So, business owners, there is no need to worry: you have not been the recipient of a substantial tax notice that will cost you thousands of dollars. Rather, pass this along to your CPA for distribution to the proper service provider, such as your payroll service. We use Your Solutions Payroll in Danvers for all payroll services.
As you can see, government notices and changes will never stop! As a business owner, it’s so important that you team up with a CPA firm that can manage your tax liability and more. At Terranova & Associates, we have the expertise to help your business navigate IRS notices and more.