Labor Smart Inc (LTNC)

[DD2Gain]

OK, so the compound interest isn't as bad as I thought being as it's annual interest compounded daily rather than daily compound interest. Nonetheless, there is nothing "cheap" about owing the IRS. All of these penalties and interest are typically compounded. So, going down the line it would be 2% + 5% + 10%, etc.

* If your federal employment tax deposit is one to five days late, the IRS imposes a 2 percent penalty.

* If your deposit is six to fifteen days overdue, you can be charged a 5 percent penalty.

* If your deposit is late by sixteen days or more, there is a 10 percent penalty.

* If the IRS sends you a notice stating that you owe federal employment taxes and you pay the deposit directly to the IRS within ten days of the notice, you'll be charged a 10 percent penalty.

* If the IRS sends you a notice stating that you owe the taxes but you wait more than ten days before complying, there is a 15 percent penalty

* A 10 percent penalty applies if you make the deposit at a financial institution that is not an authorized financial institution.

* For every month or partial month that you fail to file a return, the IRS imposes a penalty of 5 percent of what the return should have shown, up to a cap of 25 percent.

* For every month or partial month that you withhold federal employment taxes but pay them late, the IRS imposes a penalty of 0.5 percent of the tax amount, up to a cap of 25 percent.

* If you don't withhold income and FICA taxes as you are required to do, or if you withhold the taxes but don't pay them to the IRS, the IRS is authorized to penalize you up to 100 percent of the taxes owing.

http://www.reuters.com/article/2009/04/02/businesspropicks-us-findlaw-penalties-fo-idUSTRE53144N20090402