Taxes are some of the seemingly most complex documents one has to prepare. It is also one of the most tedious and critical. There are many things to fill out and many requirements to complete.Â
Making a single, simple mistake can land you on the wrong side of the IRS. When that happens, expect a lot of trouble. You can end up in jail and getting fined expensively with your reputation getting tarnished. You can lose different assets and properties, and it can ruin your business too. Therefore, the utmost caution and care are needed when preparing taxes. It is also best, to be honest in your declarations to prevent future problems. Make sure that you consult expert tax resolution services to back you up, especially if you have zero knowledge in all of these.
Tax preparation services are the best way to get your taxes done right and you need to know why.
Why Are Tax Resolution Services So Important?
When an individual is unable to pay their past tax debts, they may be able to get the help they need from tax resolution services. However, before they can do that, they will first have to create a budget in order to see how much money they will have leftover after paying for all of their necessities. From there, they should look at their options for debt relief and determine which one will work best for them. It is important that individuals also speak with a financial advisor in order to get professional advice on how to handle their debt situation.
By getting professional help from tax resolution services, individuals can improve their chances of getting their debts paid off as soon as possible. Not only will this be beneficial for them financially, but it will also make it easier for them to live without the constant stress of worrying about how they are going to pay off all of their bills. If you are looking for tax preparation services, there are plenty of experienced professionals available who can help you get your taxes done right the first time around.
Small Businesses Tax Guide
For small businesses, the profit and loss are calculated and then included in the owners’ tax returns. Here is a guide on how you can go about the tax preparation for your small business. Do note though that this guide is only for Schedule C with their Form 1040. It is only applicable to single-member LLCs and sole proprietors. If your business does not fall in these categories, then a different process needs to be followed.
Due Date
Since small businesses file their tax returns together with their tax returns, the due dates are the same. In cases when the due date is on a weekend or holiday, the due date is moved to the next business day. It is important to remember this information to avoid any confusion in the future.
It’s important to understand the due dates of your tax forms.
- Individuals: Your individual taxes are due on April 15, unless that date falls on a weekend or holiday. Then, the deadline is the next weekday.
- Businesses: The due date for your business tax return depends on the type of business you have. For example, if you file as a corporation, your Form 1120 is due on March 15. If you file as a partnership, your Form 1065 is due on March 15.
Filing Extension
But what about filing an extension? If you file an extension, you can push back your deadline to Oct. 15. That doesn’t give you more time to pay for the taxes that you owe; it just gives you more time to get your tax return prepared and filed.
You must pay at least 90% of what you owe with your income tax return in order to avoid a penalty. So if you know that your taxes are going to be complicated, and if you’re going to have to wait longer than April 15 in order to get all the information that you need, filing an extension is probably the right thing to do.
If you do file an extension, and if you end up owing money, make sure that your check is received by the IRS by April 15. Don’t bother postdating the check; it won’t matter in terms of avoiding penalties if the money isn’t received by April 15.
Good read: How to Send Payments to the IRS
Income Tax Forms
There are different forms for different schedules of taxes. What you need are the Schedule C Income Tax forms. They are necessary for calculating your self-employment tax. The types are Schedule C, Schedule C Instructions, Schedule SE for self-employment tax, and Schedule SE instructions.
Tax Details
There is a lot of information you will need to complete Schedule C. You will need the information to calculate the cost of goods sold if you have an inventory of parts and products. You also need information and proof for all business tax deductions. Examples of business expenses are driving expenses, business travels, and business meals. Unfortunately, entertainment expenses are no longer included in the deductibles. You will also need to provide information on the cost of purchasing business assets like equipment and vehicles since you need to calculate the depreciation deductions. In some instances where your business operates at home, you need to include any information relating to the business use of your home so you can have a home business space deduction. It is essential to not miss out on any of these things since it can affect income tax returns a lot.
Tax Preparer
There are others who prefer to do their taxes on their own. It is good if you are familiar with the process and you know what you are doing. You may also do so if you already have experience in filing this kind of schedule. However, the best way to go is to hire a tax preparer. If you do not know anyone, then search for the best tax preparers on the web to get recommendations. You may also visit some firms for assistance.