The Importance of Filing Business Taxes On Time
Filing for a business tax extension may be tempting... a way to kick the can down the road, so to speak. Many business owners don’t want to take the time to complete their corporate taxes, pay the liabilities, or deal with the headache, so many owners think filing for an extension is an easy fix. Unfortunately, a business tax extension probably isn’t as beneficial as you may hope.
It’s important and maybe even easier to file your business taxes on time. Taxes are due soon, if you have the ability to get them done on time, it might be worthwhile. Here’s why:
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Failure to pay can be costly: If you fail to pay your business income taxes altoghether, you will be hit with very costly penalties and interest on unpaid taxes. The IRS may take legal action against your business including seizure of property and bank accounts. While it’s last resort, business owners can also be put in jail for failure to pay taxes or tax evasion.
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You still have to pay: Whether you file on time or ask for an extension, you still have to pay your business taxes by the standard due date. If you’re not filing right away, you will still have to pay an estimation of your tax liability by the due date. So either way, you’re on the hook for paying your taxes in the very near future.
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Estimations are hard and expensive: Without fully preparing your taxes, it can be hard to make an estimation of your tax liability. If your estimation is wrong, you will be liable to pay the difference and interest on the unpaid taxes.
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Federal Health Care Deadline: Regardless of an extension, if your company employs more than 50 people, per the ACA you’ll have to provide employees with the IRS 1095-C form, basically an employee W-2 for healthcare that helps employees prove their coverage. This form must be delivered to employees by February 1st; meaning if you have to provide this form anyways, you might as well finish your taxes.
If your business is having trouble completing your corporate tax preparation, contact Tally Services. We’re here to help make the corporate tax filings less stressful and help your business get them done in time. We’ve helped businesses big and small all across the Front Range of Colorado manage their taxes, bookkeeping, and accounting tasks.