943 TAXES VS 941 TAXES

[Gail in Virginia]

I have a taxpayer, a dairy farmer, who sent in his tax deposits quarterly last year. He has now brought me his 943 to file. His liability each quarter was less than $2500, so sending it in quarterly would be fine if he were filing a 941. However, the instructions for 943 state that unless the tax for the year is less than $2500, they have to make the deposits according to either the semi-weekly or the monthly schedule. Is this really an example of a farmer being worse off than a regular taxpayer? I thought they usually got tax breaks.

[zeke]

yup

[kcjenkins]

Yes and NO. It does mean they may have to pay just a bit faster, on the other hand, they only file ONE 943, rather than having to file four 941s. So while they may need to make a monthly DEPOSIT, that is, for most of my farmers, a much easier thing to have to do than to have to file quarterly reports.

[mdmcfarland]

Also when you pay monthly the deposits are smaller. It's easier than having to pay a large amount either quarterly or annually.

[kcjenkins]

I have a couple on a regular monthly deposit, same amount each month, even tho that means a few months are overpaid. That makes it simple for them to remember to do, and it balances out to be just about 'on the money' at year end. And they like it because they don't have to figure out the proper deposit each month, or call me to do that. Since their payroll tends to be higher at year end, the extra in the early months is used in the later ones.