With the many responsibilities that you must take care of as a small business owner, filing your taxes can become very time-consuming and overwhelming. There are many important steps that you must follow, requirements you must meet and documents you must find before you can complete your taxes. Keep yourself from getting too overwhelmed by following a few general tips from our experienced tax attorneys to ensure you survive the tax filing process in one piece this year!
5 Tips to Help Navigate Tax Season This Year
Stay Organized
While this may seem like a simple and insignificant step, keeping your records organized throughout the year is one of the easiest ways to help avoid chaos when it is time to file your taxes. Whether you choose to use a filing cabinet, an electronic scanner to digitize your important papers or a computer program that will automatically keep track of your transactions, make sure you stay consistently organized throughout the year. If you have access to all of your receipts, invoice and tax forms, filling out your taxes will be much easier.
Understand Which Forms You Need
If you are planning to do your taxes on your own, you need to know which IRS forms you are required to use. For example, if you are the sole proprietor or sole owner of an LLC, you may use a Schedule C attachment on your personal income tax return to recording your business income and expenses. However, corporations must file a separate corporate tax return with Form 1120. Additionally, if your business hired independent contractors or if you have employees, you must take care of the appropriate 1099 forms and W-2’s.
Avoid Procrastination
Waiting to file your taxes can leave you vulnerable to steep penalties, so be sure that you know your tax filing deadline date. If you use a Schedule C, it will need to be filed along with your Federal 1040 form by the typical April 17 deadline. But for small businesses that must file a Form 1120, your taxes typically need to be completed by March 15. If you’ve fallen behind, you may be eligible for a tax extension but keep in mind that you may be subject to penalties and interest charges even if you are granted an extension.
Remember Your Deductions
One of the greatest incentives for starting up your small business is the sheer number of business deductions that are available to help offset your business income. But before you can take advantage of this awesome incentive, you need to know which deductions are available to you and which ones you may qualify for. Most business deductions have a few different requirements that you must meet before you can claim them on your taxes. If you are unsure where to start, consult with a tax attorney to help optimize the deductions you are entitled to.
Hire a Tax Attorney
If you are having difficulty juggling your business operations and tax preparation steps, it may be time to enlist help from a trusted professional. By working with an attorney that specializes in tax law, you don’t have to worry about which forms you need to file, what your deadline is and whether or not you are taking advantage of the right deductions. A knowledgeable tax attorney will be up-to-date with the current requirements you must meet and make sure that you never overpay in taxes. Additionally, they will be able to keep track of which credits and deductions you may benefit from, saving you lots of money in the long run.
Contact France Law Firm Today
The tax filing process is something that can be daunting for even the most experienced small business owners. But with the help of a few smart preparation tips, you don’t have to suffer through the tax season this year. Want to learn more about the benefits of working with our experienced tax attorneys as you navigate the upcoming tax season? Contact us online for more information and be sure to schedule a consultation today.
