While tax season this year might seem like it’s running by at a quick pace, there are still a few more weeks left before the April 15th deadline. Is your business return prepared? If your business is organized as an S Corp or a partnership, you’ve already missed your filing deadline – your return is due with payment if you owe, and you’ve also likely incurred a penalty.
If your business is organized as a C Corp or other, however, you still have time to file your return. That being said, most tax return preparers would have required all of your data to prepare your return sometime in February to ensure that there would be enough time to file. If your business has found itself in the position of needing tax preparation this far into March, the time has come to consider filing for an extension for your small business.
Here are considerations you will want to take into account when filing for a business tax extension:
Request an Extension As Soon As Possible
Your request for an extension on your business taxes will be granted automatically, but it does need to be made. If your extension request is not made by the return due date, you cannot ask for an extension, your return is considered late by the IRS, and you will owe a penalty for filing late as well. This penalty will accrue for every month that your business neglects to file a return.
In order to not be penalized, make your request to the IRS as soon as possible. This will extend your filing date to September of 2017, and allow you the time to get a professional tax preparer to ensure that your business return has been prepared correctly. As long as your request is submitted before midnight on the filing date, the IRS will consider your extension as being filed on time.
Calculate How Much Tax Your Business Owes
While your filing extension is automatic, that does not mean that your payment is also extended to September. Even though your return doesn’t need to be handed into the IRS by April 15, your payment if you owe does need to be handed in.
This requires that you calculate your tax payment as soon as possible as well. This is a time when speaking to a tax preparer would be prudent if you feel uncomfortable or overwhelmed by the idea of calculating what your business owes. Otherwise, you can estimate what you owe by multiplying your business’ taxable income by your current tax rate – many business owners use their tax rate from the previous year.
Start Preparing for Next Year’s Tax Season Now
Tax season can often be an overloaded and busy time for many business owners, especially if the spring is also your business’ busy time. Beginning to prepare for tax season through the year can help keep your business organized and ready to file on time. Hiring a professional tax preparer can streamline your business tax preparation process and save you a lot of stress through knowing that your taxes are taken care of.
Contact Executive Accounting Services Today
If you don’t have a tax preparer for your business, contact Executive Accounting Services for your tax preparation needs. Call us today at 919-859-8600 or fill out our contact form for more information.