Income Tax Withholding While Issuing Post-Dated Check

If a business entity issues post-dated check to attorney, CPA, other practitioners or landlord and payment date is the same as issuing date, the withholder must withhold income tax while issuing the check. If payment date of the check is different from issuing date, income tax is not necessary to be withheld while issuing the check but must be declared to tax collection authority in year of issuing the check.

A tax withholder who fails to withhold tax, in addition to being instructed to pay the tax amount which should be withheld but was not withheld or has short withheld and to submit supplemental tax-withholding certificates within a given time limit, be subject to a fine in an amount equal to the tax amount that should be withheld but was not withheld or was short withheld. If the withholder still does not comply with the instruction to pay the tax amount or to submit supplemental tax-withholding certificates truthfully within the given time limit, he shall be subject to a fine in an amount equal to 3 times the amount which should be withheld but was not withheld or was short withheld.