Under the semiweekly deposit rule, if a liability of $110,000 is incurred on Wednesday, when is the deposit due?

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Multiple Choice

Under the semiweekly deposit rule, if a liability of $110,000 is incurred on Wednesday, when is the deposit due?

Explanation:
Under the semiweekly deposit rule, there’s a special accelerated deposit requirement: if the tax liability for any day in the deposit period reaches $100,000 or more, you must deposit by the next business day. Here, $110,000 is incurred on Wednesday, which triggers the acceleration. The next business day is Thursday, so the deposit is due Thursday (by the close of business). Thursday evening would be after-hours, so the deadline is Thursday, not Thursday evening.

Under the semiweekly deposit rule, there’s a special accelerated deposit requirement: if the tax liability for any day in the deposit period reaches $100,000 or more, you must deposit by the next business day. Here, $110,000 is incurred on Wednesday, which triggers the acceleration. The next business day is Thursday, so the deposit is due Thursday (by the close of business). Thursday evening would be after-hours, so the deadline is Thursday, not Thursday evening.

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