New Sub S Corp for 2005 will file as "Cash Method".
With respect to employer's payroll tax expense for the 4th Qtr 2005, (to be deposited Jan 15, 2006)can these be deducted (ie, 'accrued') on the 2005 income tax return?
I seem to recall that payroll tax expense was a specific exception to still being able to deduct and remain a cash method taxpayer even though the expense was not paid until the following year. However, I have not found any written discussion in my research.
Maybe my mind is playing tricks on me.
With respect to employer's payroll tax expense for the 4th Qtr 2005, (to be deposited Jan 15, 2006)can these be deducted (ie, 'accrued') on the 2005 income tax return?
I seem to recall that payroll tax expense was a specific exception to still being able to deduct and remain a cash method taxpayer even though the expense was not paid until the following year. However, I have not found any written discussion in my research.
Maybe my mind is playing tricks on me.
Comment