Filing taxes for your business can be a complicated process. Fortunately, determining which deductions you can take and what you owe or get back can easily be handled by a tax service in Jamestown, ND.
Sometimes, businesses miss the filing deadline for one reason or another, or they simply need an extension. If you missed the deadline to file your business taxes, it is good to know what penalties you face and what type of actions can be taken against you.
What you need to know
If you are filing your small business taxes late, it is still important to file them as soon as possible. This will reduce the interest charges that will occur, and late penalties will be kept to a minimum. You want to send your tax return in as soon as possible (with your payment, if you owe) to avoid additional charges. A tax service in Jamestown, ND can walk you through the process of filing a late return.
When you owe more in taxes than you can afford to pay immediately, you can request an additional 60 to 120 days to pay. You need to have your tax service in Jamestown, ND fill out an online payment agreement. If this extension isn’t enough time to come up with the money, you can request to pay in installments that will be arranged by the IRS.
If you are owed a refund, you still want to send your business taxes in as soon as possible to avoid the IRS from holding your return—or worse, losing it entirely to late fees. The IRS gives businesses three years to file a return with a refund and still get the amount owed to you. Filing right away will give you access to this additional money. If you wait to file your return and you are owed money, the IRS can hold the amount owed to you until you file your late return or provide an acceptable reason for not filing a past due business tax return.
For self-employed individuals, paying your business tax return as soon as possible will help you protect your Social Security benefits. You want your earned income to be reported accurately to the Social Security Administration. If you do not file your business taxes, credits will not be put toward your Social Security retirement or any disability benefits. It is imperative to file your business taxes to get these credits.
Filing late can also penalize your business when applying for loans, as financial institutions request this information from loan applicants. Avoid this complication by filing your business tax returns straight away. Work with your tax service in Jamestown, ND to make sure you don’t have problems applying for loans and get credit for the income you have earned as a business owner.
It is important to file your business taxes as soon as possible to avoid getting stuck with additional penalties and marks against your business. A tax service in Jamestown, ND will be able to help you to prepare your business tax return for filing right away. If you need help filing your business tax return, contact Craig S. Hanson, CPA. Our firm has several decades of experience in accounting and tax preparation for businesses, partnerships, corporations, farms and individuals.