When tax time comes, the last thing you want to deal with is tax problems that slow your business down. Unfortunately, tax problems come in different shapes and forms, and dealing with them can take a lot of your time and energy, leaving you exhausted.
That said, knowing what kind of common tax issues can arise can help you better prepare for them, and today, we want to share with you the tax problems you may face:
1. Unfiled Tax Returns
Maybe you forgot that you need to file your tax return, or maybe you missed the deadline by just a couple of days. Whatever the reason, tax returns can get lost in the shuffle.
If you haven’t filed your tax return, then you are likely missing out on vital tax relief. The filing deadline for taxes has passed, and you owe the IRS for taxes, penalties, and interest. You will have to pay the full amount of tax due or face further penalties. You may have a tax lien placed against your business or property.
If you have not filed your taxes, you need a tax attorney to help you resolve this situation. Before you do anything, make sure you have a lawyer on your side.
2. Late Tax Payments
It’s tempting to take a short-term view when paying taxes. You may have an upcoming payment deadline, and you may feel the need to prioritize things like inventory or accounts receivable over bank wires. This can lead to delinquent tax payments, which can result in further penalties and interest.
If you are dealing with overdue tax payments and penalties, you need help. Time is of the essence when it comes to delinquent payments, and you would be wise to act right away.
3. Tax Audits
The IRS is charged with ensuring tax laws are followed, which means they audit taxpayers each year. Many of these audits are the result of routine IRS audits, but sometimes the IRS will go after a taxpayer because they have reason to believe they may have committed tax fraud or tax evasion.
If you are facing a tax audit, then you need the help of a tax attorney. There are many things your attorney can do to protect you from an audit.
If you’re an established business, there’s a good chance that you have refunds coming your way. However, if you are waiting on a refund, and it doesn’t show up as expected, it’s possible that you’ve been hit with a tax refund theft.
Tax refund theft is a growing problem. So what is it, exactly? Well, basically, it’s when someone gets a hold of your tax refund before you do. You may get a notice indicating that your refund was sent to the wrong address, or it may be deducted or seized.
To avoid this kind of scam, you need to do what you can to protect your refund. This means protecting your social security number and using direct deposit for your refund.
It’s important to remember that small business owners are not exempt from tax problems. The large majority of tax problems will occur with small businesses, so small business owners need to be prepared for those problems.
As we’ve shown, there are multiple tax problems that can occur. Knowing about these problems and how to handle them can help you to better plan for the future and protect your business. If you need further help with your taxes, feel free to reach out to a professional to assist.