Filing taxes can be a complicated and confusing process for businesses. Knowing the different tax requirements, deadlines, and potential credits and deductions available can help businesses get their taxes done efficiently and accurately. This article will provide an overview of what businesses need to know when filing taxes.
Understanding Your Tax Obligations
The first step in filing taxes is understanding your tax obligations. Different types of business entities, such as a corporation or partnerships, must file different types of returns. Each type of entity has its own set of filing requirements and deadlines that must be followed in order to avoid any penalties or fines from the Internal Revenue Service (IRS). Additionally, it’s important to make sure all required forms are filled out correctly, including those related to payroll taxes, employee withholding, sales and use tax payments, etc.
Deductible Expenses & Credits
Businesses may also be eligible for certain deductions and credits when filing their taxes. Common deductible expenses include travel costs, office supplies and equipment purchases, legal fees paid to an attorney or CPA for tax advice, etc. Additionally, some businesses may be able to take advantage of certain credits such as the Work Opportunity Tax Credit (WOTC) or the Energy Saving Investment Tax Credit (ESITC). It’s important to note that each credit has its own set of rules and criteria that must be met in order for a business to claim it on their return.
Penalties & Fines
It’s also important for businesses to understand the consequences of not complying with various tax regulations. Failing to pay taxes on time or comply with IRS regulations can result in hefty penalties and fines from the agency. Additionally, if fraud or false information is reported then criminal penalties could also apply depending on the severity of the case. Therefore it’s important that businesses closely monitor their tax situation so that they don’t accidentally put themselves at risk of any costly mistakes or omissions on their return.
Hiring a Professional
Finally, hiring a professional accountant or CPA can help simplify the process of filing taxes for businesses by ensuring everything is filled out accurately and completely while taking advantage of any potential deductions or credits available based on your unique situation. A quality accountant will have extensive knowledge regarding both personal income taxes as well as corporate tax law which makes them especially qualified when it comes to helping companies prepare their returns.
As Stover Landing is based in Northern California, we recommend the services of this company in Sacramento:
Busy Bee Advisors
333 University Ave Suite 200, Sacramento, CA 95825
(916) 400-3500
Final Thoughts
Filing taxes can often feel like an overwhelming task but having comprehensive knowledge about what needs done, due dates, potential savings & possible risks associated with non-compliance can make this annual chore more manageable. Furthermore enlisting help from reliable professionals such as accountants & CPAs who have expertise in fiscal matters might provide the assistance needed before taxation season arrives.
