• Magazine
    • Past Issues
    • Subscribe
    • Change Mailing Address
    • Surveys
    • Guidelines for Authors
    • Editorial Calendar
    • Editorial Deadlines
  • Practice
    • Business Tips
    • Clinical & Technique
    • eBooks
    • eCourses
    • Infographics
    • Quizzes
    • Wellness & Nutrition
    • Personal Growth
  • Resource Centers
  • Products & Services
    • Buyer’s Guide
    • Products Directory
    • Submit a Product
    • Vendor Login
  • Datebook
    • Become an Events Poster
    • Post an Event
    • View Events
  • Jobs
    • Jobs
    • Post a Job
  • Advertise
    • Advertising Information
    • Media Kit
    • Contact Us
    • Upload Advertising

Your Online Chiropractic Community

Chiropractic Economics Your Online Chiropractic Community
Subscribe
  • Home
  • Current Issue
  • News
  • Webinars
  • Chiropractic Research
  • Students
  • Podcast

I.R.S.Eases Electronic Tax Deposit Rules

Chiropractic Economics January 6, 2000

Congress gradually phased doctors into the electronic tax deposit filing system through the end of 1999. Doctors with more than $50,000 in employment tax deposits during calendar years 1995, 1996 and 1997 were required under tax laws to begin depositing these funds electronically beginning Jan. 1, 1999. Doctors who failed to comply with the electronic tax deposit rules faced a penalty equal to 10% of the taxes deposited.

Reacting to strong criticism from doctors and other small business owners, Congress and the Internal Revenue Service (IRS) extended the period of time they would waive penalties for failure to electronically deposit through June 30, 1999. Recently, the IRS announced it will continue to waive these penalties through Dec. 31, 1999.

In addition, the IRS recently issued proposed regulations that would allow thousands of doctors to continue to deposit employment taxes with their bank using paper coupons, as in the past, without penalty. Under the new rules, the annual tax deposit threshold required to trigger the switch to electronic tax depositing would increase from $50,000 to $200,000, effective Jan. 1, 2000. This new threshold would apply initially to 1998 tax deposits. Doctors who exceeded the $200,000 deposit threshold in 1998 would have to begin depositing electronically in 2000. Doctors who first exceeded the threshold in 1999 or a later year would be required to deposit electronically after a one-year grace period.

A doctor who exceeds the threshold once would not be permitted to resume making paper coupon deposits at his or her bank, if deposits fell below $200,000 in a later year. More importantly, doctors currently required to deposit electronically would get a fresh start under the new rules, and thus would not have to use the electronic tax deposit unless they exceeded the $200,000 threshold in 1998 or a later year.

The IRS estimates only 9% of doctors who make federal tax deposits would be required to deposit electronically under the new rules. In addition, the IRS says “fresh start rules” would allow 65% of doctors currently subject to electronic filing to resume making paper coupon deposits with their bank beginning in 2000. However, IRS spokespeople say they are confident most doctors will continue to deposit electronically on a voluntary basis.

Filed Under: 2000, issue-01-2000, Magazine Issues

Current Issue

820 A1A N Highway W18,

Ponte Vedra Beach, FL 32082

Phone 904.285.6020

Fax 904.395.9118

CONTACT US »

Copyright © 2019, All Rights Reserved

SUBSCRIBE TO THE MAGAZINE

Get Chiropractic Economics magazine
delivered to your home or office. Just
fill out our form to request your FREE
subscription for 20 issues a year,
including two annual Buyers Guides.

SUBSCRIBE NOW »

Latest Chiropractic News

  • Fruits and vegetables may be important for mental as well as physical well-being
  • Newly discovered gene governs need for slumber when sick
  • American Nutriceuticals natural supplement company celebrates its 20th anniversary
Insert Custom HTML
x