News Notes: IRS Extends Electronic Tax Deposit Deadline

The IRS has postponed the deadline for businesses to begin making payroll tax deposits electronically until the beginning of next year. The agency backed off the original July 1, 1997, deadline because of pressure from Congress and complaints from smaller employers that they were having trouble complying. Now, if your company pays more than $50,000 in annual payroll taxes, you’ll have until Jan. 1, 1998, to start paying electronically or face penalties of up to 10% of your tax bill.