Has anyone told you today that Congress just voted to get rid of all income taxes? Have you heard that every state just agreed to scrap their sales taxes? If so, let’s hope you put two and two together to realize that today is April Fool’s Day, and it’s hard to believe anything out of the ordinary. However, with all the jokes aside, IRS business tax requirements are seriously no laughing matter. Here’s why:
- There are more rules for IRS business taxes than for personal taxes: Individuals commonly use Form 1040 to file their personal income taxes. In the small business world, though, there are many other IRS tax forms that must be used to report income and pay taxes on it (such as Form 1120S for certain S corporations). Plus, certain types of income have to be reported on certain forms, and some income is subject to additional tax obligations. That’s why it is so important to be aware of what rules you must follow since every business in each different industry can be treated a bit differently.
- There are unique filing deadlines for IRS business taxes: Quarterly tax filings throughout the year are a big part of operating a formal small business or working as a self-employed sole proprietor. These deadlines require tax payments to be made four times a year – in January, April, June, and September. March 15th is also a unique IRS filing deadline for owners of corporations. These are just a few examples of the unique and additional deadlines required for the purposes of filing business taxes. It’s imperative to keep up with these dates in order to stay compliant and avoid any potential problems or budget-breaking penalties.
- There are penalties for failing to file/pay business taxes: Just like penalties for failing to file or pay personal taxes by April 15th, the same is true for not following through on your IRS business taxes in a timely manner. In addition, if you don’t make required payments that you owe on time, this could add insult to injury. These penalties are simply one more reason to keep up with the deadlines for your IRS business taxes. The last thing you’d want is to miss a business tax deadline because you were so focused on your personal taxes, or vice versa.
- More money is often at stake in the business world: Earning a set W-2 salary is fairly cut and dry. But when one or multiple additional sources of income are at play, things can get a little trickier. There are often six-figure dollar amounts at stake when owning a successful small business. This is why you should always be on top of your business finances and the tax implications associated with them. Since companies making lots of money are on the hook for high tax rates, exploring the tax deductions and tax credits that can reduce their tax liability is a must. Arranging a small business into the appropriate tax structure is also part of this tax-saving process.
1-800Accountant employs experienced teams of accountants, CPAs, and enrolled agents who specialize in handling IRS business taxes. To put your small business accounting needs into the hands of these professionals so you can rest at ease at night, call 1-888-749-01171-888-749-0117 or check out www.1-800Accountant.