He had calculated it was cheaper to pay any penalties and interest to the government. It allowed us to keep enough cash on hand to meet content near-term expenses, Taylor says. Tax preparation tips Pay the IRS late? At some firms, its a smart move A strategy of paying taxes late rather than when theyre due is contrarian the government frowns on late payments, and penalizes procrastinators. While some companies can justify paying late because of unusual events like the one Taylor dealt with, tax professionals advise business owners not to take such a step lightly, and to consult an expert well before the deadline for filing their income-tax returns. Certified public accountant Leon Dutkiewicz looks at intentional late payments as a one-shot deal, and something to be done only if a business is certain it has money coming in fairly soon after its filing deadline.
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