Thank you for your question.
If you are on cash accounting, you have to take your expenses in the year paid for.
You have to count your revenues in the year received.
Now the issue iwth cleared checks and the like is: you are considered to have constructive receipt in the year the check is given you to you. so you could receive a check on december 31, and it has to be included in 2008 income, even if it is not cashed at the bank until 2009.
You can only count expenses into the next calandar year under two circumstances:
1. You are on accrual accounting.
2. If you have net operating losses, you can take those looking back and then forward.
Under the accrual method, transactions are counted when the order is made, the item is delivered, or the services occur, regardless of when the money for them (receivables) is actually received or paid. In other words, income is counted when the sale occurs, and expenses are counted when you receive the goods or services. You don't have to wait until you see the money, or actually pay money out of your checking account, to record a transaction.
Under cash accounting you take expenses when they are paid, and you count cash when it is constructively received.
If you are already on cash accounting, which mos tsmall businesses are, then you can only change with the approval of the IRS.
As a sub chapter S, you have to pay yourselves a pay check using form W-2. that paycheck has to be reaonable. This is a payroll expense.
Now you have some accounts payable that have apparently paid you 10K during 2008. it has to be counted in 2008 income and reported on your 1120-S. http://www.irs.gov/pub/irs-pdf/f1120s.pdf
it will be allocated between you as a distribution. (K-1)
Now you have until the filing date of your taxes plus any extensions to contribute to your SEP and KEOUGH plan, and have it count for 2008. so you can make sure you have made maximum contributions to those accounts.
I do not understandn your refernce to the tax payment in 2009. Are you meaning that you are suggesting you pay 2009 taxes tomorrow, or are you say you would be paing 2008 taxes owed in 2009?
Thank you for your feedback and comments.
You will treat these quarterly payments the same as you would anyother. So your estimated tax liabilty for the fourth quarter would be a bit higher. BUT remember, the IRS will allow you to avoid the January 15th quartelry payment if you can file your return by February and include the total amount due with your return.
Also, you needed to have opened the SEP/Keough accounts by December 31's. But have until the filing deadline with extensions to fund them. So if you have not established your SEP/Keough yet, then your only other option is if you have an IRA account somewhere you can contribute to. You have until March 15th for that option as well.
this is one of those rare instances that accrual based accounting may have helped you. But for a onetime issue, I do not think the complexity of it would be justified.
You are welcome. let me know if you have anyother questions on this issue while the question still open.