Late Taxes Filing
Unfortunately, some of us tend to forget to file our taxes on time. The Internal Revenue Service (formally known as the IRS) uses this to try and assess penalties as well as interest.
Their best interest is simply to drive revenue to the government which is why they assess the previously mentioned penalties. This is exactly why they tend to be one of the hardest government agencies to work with, much less work out something out with.
What if taxes aren’t filed on time?
If you don’t file your taxes on time, the IRS could assess you with a late filing penalty. This could either be a set amount or percentage of the taxes owed. The good thing is that if you know you can’t file on time, you can request an extension.
When you get an extension, the IRS will allow you to file your taxes at a later date. This will also prevent the IRS from charging interest/penalties in combination with your tax debt. However, if you don’t file your extension request on times you may be ineligible for it.
What can be done in terms of late tax filing?
The first step is to gather all of the documentation which proves your income as well as expenses incurred (provided that they qualify as a write-off). Once you have all of the needed documentation you can proceed with completing your overdue filing.
If you’re not able to afford the tax liability that you’re responsible, you can file an economic hardship (which is essentially the extension request described previously). Don’t fail to file, as it will definitely cost you more money in the long run than it would if you were to complete your filing.
Is the better option to hire a CPA to help?
If you don’t want to deal with the hassle of learning the regulations and laws set forth by the Internal Revenue service, this is definitely the better option. A qualified CPA will have to stay on top of all the changes to ensure that they’re in the loop when it comes to taxation.
Another great benefit of working with a CPA is that they can help ensure that you don’t file your taxes late again, since they’d stay on top of your finances and obligations as well as filing deadlines. While it may not be required to have an accountant working for you, it does produces more benefits than not.
Here’s what you need to know about working with an accountant.
An accountant is only as good as the information that you share with them. If they don’t have updated documentation or know about your situation, there’s only so much they can do.
This is why you want to make sure you produce copies of your 1099s, W2s, employee documentation, and receipts for expenses incurred that could be deemed as business expenses. By doing so, you’re ensuring that the accountant can do what’s in your best interest and that they have evidence to back where your business is currently standing.
The DIY approach versus hiring an accountant.
This is often sought after as the cheapest option, but sometimes it may not be the best. Especially when it comes to business taxation. If you want complete accountability, it’s always best to have someone that knows them in and out working for your best interest.
Not only does this keep you in compliance with tax authorities, but it will ensure you always have a clear sight to the bottom line. This is because accountants believe highly in wise expenditures as well as ensuring that all numbers attached to a business are tracked at all times.
Are you ready to embrace the best late tax filing solution?
If you’re tired of the burden of being late filing, get in touch with the folks here at GLG Accounting. We can ensure a painless experience that ensures you get treated in a friendly and professional manner. Say goodbye to tax headaches and hello to the most comprehensive accounting solution in the industry.
Schedule your free tax consultation with an elite accounting firm today!
After all, it could be a step in the direction your business needs to enhance growth.