Florida General Contractor Practice Exam

What condition allows the IRS to consider a late mailed deposit of social security taxes as timely?

1. If it is mailed within five days of the deadline

2. If the employer can prove the deposit was mailed on time

3. If the deposit is less than $500

4. If the employer has been late previously

The correct answer is: If the employer can prove the deposit was mailed on time

The IRS allows a late mailed deposit of social security taxes to be considered timely if the employer can provide evidence that the deposit was mailed on or before the due date. This means that having a record of the mailing date is crucial. For example, if an employer sends the payment through registered mail and keeps the receipt, it serves as proof of timely mailing, even if it doesn't arrive at the IRS office until after the deadline. This policy is designed to accommodate those employers who have made a genuine effort to fulfill their tax obligations on time. It shows an understanding of potential postal delays or other unforeseen circumstances that could prevent the timely delivery of the payment. By allowing this proof of timely mailing, the IRS aims to ensure that employers are not penalized for factors outside their control when they have adhered to their responsibility to send the payment on schedule.