Welcome Guest. Register Now!  


New Jersey NJ


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-05-2009, 02:57 PM
Junior Member
 
Join Date: Mar 2009
Posts: 2
New 2008 C-Corp

I started a new LLC in NJ July 2008, during the creation of my LLC I elected to be taxed as a C-Corp (on the advice of my account). My new business has not generated any income yet. I'm creating new products and they are not ready for market yet but I anticipate completing this task shortly. I anticipate a profit in 2009 (maybe 10K).

My accountant just completed my 2008 business taxes, I do not owe any Federal taxes but I do own NJ the minimum + 2008 estimated taxes penalty.

Here my question: My accountant explained I must pay a $25 penalty for not paying NJ 2008 estimated taxes. He prepared my 2008 taxes so I will pre-pay for 2009. So, it appears if I had pre-paid in 2007 for tax year 2008 estimated taxes I would have avoided this penalty but I create my entity in 2008 not 2007 so how could I pre-pay. Is this a valid penalty for me to pay or should I ask my accountant to remove this?

Thanks,
Steve NJ



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 03-06-2009, 01:36 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,399
Blog Entries: 3
Steve, your accountant did not take into consideration that you had a Zero tax liability in 2007! Thus, you would not be subject to the 2008 underpayment penalty for not making the quarterly estimated tax penalties of $520 in 2008.

Sorry, but your accountant either rushed to prepare your 2008 tax return or it was a genuine oversight by him! But, please tell him that he should code your tax program file as having a zero tax liability on the 2007 tax return for NJ State and the penalty will disappear!

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 03-06-2009, 11:24 PM
Junior Member
 
Join Date: Mar 2009
Posts: 2
Thanks

I appreciate your reply.
Thanks,
Steve



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #4 (permalink)  
Old 03-07-2009, 01:07 AM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,399
Blog Entries: 3
Glad we could be of help to you!

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning