As you close out your finances for 2011, you or your business may need help understanding how to file and settle your IRS taxes. Filing incorrect information can be problematic. Errors may can mean that you are missing out on deductions, that you have paid too little (and can be hit by penalties, fines, or interest later in the year), or even that your company could be selected for an audit.
At BusinessTaxPreparation.com, we have the experience to provide business tax services that will maximize your business deductions and ensure that your tax filing is accurate. While we recommend hiring a tax professional, here are some tax planning tips that every business owner can use when preparing for their annual business tax return filing.
Know your deductions—Make sure that you know which deductions apply to your business. Business costs can be deducted from gross income. Common small business expense deductions include automobile, home office, travel and entertainment expenses.
Correctly classify your business—You may be able to reduce your tax rate by correctly classifying your business. There are different tax liabilities and rates for different types of businesses including an LLC, S- or C-Corporation, Partnership, or Sole Proprietorship.
Know when to pay your taxes—Knowing your tax due date is important but you can also request an extension if you need to change it. Not all extension requests are approved, but there are specific actions like delaying payment collection or purchasing real estate that can help.
Pay your taxes in installments—If your business is unable to pay the taxes owed in one lump sum, you may request to pay off your IRS tax debt through monthly payments. Requests are considered based upon need and eligibility. Make sure to check whether the interest charges outweigh the benefits of a deferred payment schedule.
Navigating through tax season can be difficult. If you are a business owner looking for business tax services or business accounting solutions, the tax professionals at BusinessTaxPreparation.com have the expertise to help. Call (866) 676-9417 or email info@businesstaxpreparation.com today for a free, no obligation consultation.