Ken Davis Posted December 17, 2012 Share Posted December 17, 2012 All, IRS Notice 2008-115 (attached) has a special rule for withholding income taxes on 409A income included in income on 12/31/12, but not paid until January 2013. If the withholding tax is withheld from the actual payment in January 2013 and is paid to the IRS by the December quarter 941's due date, then no failure to deposit taxes penalty will apply. Our question is what do we do on the 941 to indicate that we've met the 2008-115 requirements. Without some indication, isn't the IRS going to see on Sch B of 941 a liability on 12/31/12, one that for us would normally have to be deposited in the first week of January, but then see a deposit actually made on January 20, 2013 when we cut the check to the employee and withheld the taxes? Or, are we just forced to sit back, receive a late deposit penalty letter and deal with it then? Thanks, Ken Davis Univ. of South Alabamafacopier_usouthal.edu_20121214_150243.pdf Link to comment Share on other sites More sharing options...
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