Perhaps you’ve heard your co-workers laughing in their offices today. Maybe your business partner texted you a funny joke out of the blue. Did you know today is International Joke Day? Yes, cheesy one-liners that make us laugh out loud are humorous for some. But when it comes to IRS business taxes, there is no laughing matter there. Here’s why:
— More rules for IRS business taxes than for personal taxes
Most individuals 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 specific 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 little differently.
— Unique filing deadlines for IRS business taxes
Quarterly tax filings throughout the year are a big part of properly running a small business and 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 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.
— Penalties for failing to file or pay business taxes
Much like penalties for failing to file or pay personal taxes by April 15th, the same goes for not following through on your IRS business taxes in a timely manner. Additionally, 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 want to happen is to miss a business tax deadline because you were so focused on your personal taxes, or vice versa.
— More money is often involved
In terms of taxes, earning a standard W-2 salary is fairly cut and dry. But when one or more additional sources of income are involved, things can get a bit more complicated. There are often six- or seven-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 critical. Putting a small business into the appropriate tax structure is also part of this tax-saving process.
1-800Accountant has experienced teams of accountants, CPAs, and enrolled agents who specialize in handling IRS business taxes for entrepreneurs in all industries. To put your small business accounting needs into the hands of professionals so you can rest at ease, call 1-888-749-0117 or check out the “Services” page on www.1-800Accountant.