NEW TAX DEPOSIT RULES FOR SMALL BUSINESSES.

In a step to simplify a major area of tax administration, the IRS will end monthly tax deposit requirements for about one million small businesses. According to the IRS Digital Dispatch, beginning Jan. 1, 2001, many small businesses will be allowed to make employment tax payments on a quarterly basis, not monthly.

Under the new rules, the IRS will allow businesses to make payments every three months if they have less than $2,500 in quarterly employment taxes.