Pay the government more today, giving you a credit tomorrow.
Most government situations will allow you to pay more in taxes now to credit your account for the next tax period. If this is not the case, a simple, yet justifiable, error in the government's favor will not raise any red flags. Just be careful that your state doesn’t require you to amend end-of-the-year returns or this will not do you any good.
Pay commissions or bonuses in December instead of January.If you make any quarterly commission or bonus payments based on a previous quarter’s performance, paying at least a portion of these out in December instead of January will happily cut into your net profit. If you want to avoid scrutiny, categorize these as “holiday bonuses” and deduct the amount paid from any quarterly bonuses usually paid in January. If the bonuses pertain to work performed in 2012, this is perfectly legal and will simply look like a nice gesture by you to give your commissioned employees more money to buy gifts for the holidays.
If you ship products, allow for delayed payments or defer payments.There is such a delay in shipping items in December that many orders do not arrive at their destinations until well into January. It is easy and allows some of your better clients to pay for orders in January versus prepayments. If you sell things on the Internet, it is easy to a run these sales through on payment “posting” dates as opposed to the actual date of a sale. Also consider deferring payments by simply holding deposits and logging/recording the deposits in January, particularly if you are on a cash-based versus accrual-based system.
NOTE: Now is not the time to pay for things your business can not afford and paying extra taxes will do very little to keep your business in healthy shape for 2013. Your future growth is what will eventually provide that extra revenue the government seeks.
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