If You Had to File Your Business Taxes Today Would You Be Ready?

If You Had to File Your Business Taxes Today Would You Be Ready?

Some business owners actually end up getting a refund after filing their business taxes with the Internal Revenue Service, but most either owe or break even. Despite the fact that the taxman comes knocking the same time, year after year, most companies simply aren’t ready. They might not have all the receipts that they need to claim all their deductions. Then there are businesses who constantly ask their accountants to file for an extension because they don’t think they can afford to pay their tax bills.

This is a reason why all business professionals should consult with business accounting degree online graduates before they incorporate their companies, rent business offices, or spend a single cent on marketing. The fact of the matter is that being behind on your business taxes or even being unprepared to pay can be a reason for the government to make it very difficult for you to remain in business.

Are There Penalties for Being Behind on Business Taxes?

When you file a business tax return , you end up calculating a number that shows what is due in total to the government. If you’ve been making quarterly tax payment as recommended by all online bachelors of accounting degree holders, then you should be good to go when you file your taxes. Unfortunately, a lot of businesses hold off paying their federal taxes until the very last minute. This can result in them accumulating a hefty tax bill that is payable all at once.

You can either ask for an extension on your taxes, or you can remain quiet and not file your taxes with the government. In short, the penalties can be severe for failing to file business taxes. Although it will probably take the I.R.S. a few years to catch up with you, they’ll want all their money, as well as compounded interest on all accrued penalties.

Is It a Good Idea to File for a Business Tax Extension?

In the event your company doesn’t have the cash available to pay your tax bill, you should look at liquefying assets. If you can get an advance on a business credit card, take it so that you can pay your taxes. On the other hand, it might be alright to request an extension to pay your business taxes, but you have to be certain that you can pay it when the time arises. You absolutely don’t want to request a business tax extension and then come up short when the check needs to go in the mail.

How to Avoid Having a Tax Deficit

Businesses are very rarely exempt from paying federal taxes. Work with an accountant so that you can lower your tax liability and have a lower bill. Most importantly, pay your taxes on a quarterly basis so that you aren’t stuck paying a huge sum when your profits may be at their lowest.

So, if you had to file your taxes by the end of today, could you do it? If the answer is no, try to work on getting prepared so that your tax bill is more manageable. Ask an accountant to explain how you can keep your business tax liabilities lower so that the next fiscal year is more lucrative.