When you own a business, it’s important to properly file your taxes. After all, you don’t want to run into some trouble with the IRS. But what happens when you fail to file your business taxes?
Why Do You Need to File Taxes for Your Business?
The IRS requires businesses to file taxes because it needs to collect the money businesses owe them. In fact, the IRS depends on taxes to fund the programs and functions it provides. It’s not just the IRS, though. The state also collects taxes. While your federal income tax rate might be zero, you could actually be paying taxes to the state. Of course, if you live in a state without a state income tax, you don’t need to worry about that.
Why Is the IRS Interested in Your Business Taxes?
The IRS requires businesses to file taxes because they want to make sure the people who own and run businesses are paying their fair share. The IRS also wants to make sure businesses are reporting the income they receive. In most cases, this is a partnership or LLC. If the business paid a person to perform work or provide products or sold a product or service for a profit, then it might be required to pay taxes.
Why Is It Important to File Your Business Taxes on Time?
When you file your business taxes on time, it’s much easier to avoid trouble. You can receive a penalty if you are late with your tax filing. The penalty depends on how long you wait to file. It could be $100, or it could be $5,000. It could also be a percentage of your tax bill if the amount is large enough. If the IRS approves your extension request, you might receive additional time to file. The IRS might even allow you to file for an additional 60 days.
What Happens if You File Your Business Taxes After the Deadline?
The IRS might send you a warning notice. The notice can let you know that the IRS hasn’t received your paperwork. It might even let you know when the IRS expects to receive your business taxes. It’s best to file your business taxes as quickly as possible. The IRS might even send you a final notice. This is a notice that you haven’t filed your business tax return. It’s similar to the warning notice, except it’s more serious. If you receive a final notice, you could receive a penalty, have your business closed, or have other financial penalties. You should avoid all of these scenarios by filing your business taxes on time.
What to Do When You Miss the Tax Deadline
Filing your taxes late is something that happens to everyone, but there are ways to fix it. You can file for an extension to file your business taxes. You can request an extension using form 8868. A form 8868 lets you ask the IRS to give you more time to file your taxes. If you receive an extension, you will have six months to file your taxes. You must also file your taxes by the original deadline, or you will receive a penalty from the IRS. This can be as much as $205. You can also get in touch with the IRS to help you out if you miss your deadline. As long as you submit your paperwork within a certain amount of time, you might not receive a late filing penalty.
Final Thoughts
If you’re a business owner, it’s important to file your business taxes on time. Not only could you face a penalty from the IRS, but your business could be closed as a result of your late filing. Filing your taxes late can cause you a lot of trouble, so it’s best to avoid it.
Fix your business tax problems with the help of Axiom Tax Resolution Group. We are trusted tax professionals that are ready to find a permanent solution to your tax problems with the IRS. When you turn to Axiom Tax Resolution Group for help filing your delinquent tax returns, getting up to date is easier than you think. Get in touch with us today!
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