For small businesses, tax can be stressful. Your company has lots of expenses to take care of. The last thing many business owners want to do is to give more of their hard-earned income to the government.
Like it’s for personal taxpayers, the IRS (Internal Revenue Service) also requires all owners of small businesses to pay taxes owed in full as well as file tax returns. You can opt for the SR&ED tax credit program to reduce the overall amount of taxes you are supposed to pay.
A delay to do these on time can come with serious consequences. With that said, companies need to keep close tabs on the many filings and payments when due, during the year. It’s important to make a concerted effort to file and pay when needed.
How to Pay Tax for Your Business on Time
There are different ways for paying your company tax without delay. Here are three of them.
Embrace the fresh start program
With an end goal to help struggling entrepreneurs during a harsh economy, the Internal Revenue Service introduced the extension of the Fresh Start Program. The program gives penalty relief to entrepreneurs who haven’t filed taxes as well as encountered a twenty-five percent or more decrease in business during 2011. How do you qualify for this program? Your owed tax can’t surpass $50,000. If you are interested in this penalty relief, use IRS Form 1127-A to apply.
When you give your return to the Internal Revenue Service, you might have the option to enter an installment consent to take care of your taxes. A fiscal summary is required on the off chance that your back charges surpass $50,000. In this case, the maximum time limit to take care of your duties is seventy-two months.
Reduce travel expenses
If you travel often, you might have the option to diminish your business taxes. Business travel is completely deductible. However, private travel loathes a similar advantage. In any case, to get the best from business travels, entrepreneurs can merge individual travel with a justifiable business reason. Any regular flier miles procured from business travel can likewise be reclaimed for personal travel sooner. Take advantage of this.
Be swift with file return
As an entrepreneur, it is essential to file every tax return on time – regardless of whether there are financial limitations to make the full payment. If the Internal Revenue Service has filed a substitute form, then you can reduce your liability when you file your return quickly.
When you don’t make effort to file or make payment, then the Internal Revenue Service might demand that the entrepreneur secure a loan or sell or mortgage assets to clear cash owed.
If an endeavor isn’t made on the side of the taxpayer, collection action can be made by the IRS. For example, levying income and assets, as well as bank accounts. This sort of action could adversely affect your credit report. People who keep on being rebellious might have to deal with extra damage.