Tax deadlines can be a very intimidating thing for businesses to handle if they are not done on time. As you keep pushing off doing your taxes, the deadline looms closer and closer and so does the threat of owing money for tax evasion. It’s crucial that you know how to file your taxes properly, the consequences of late filing, and request file extensions. PayTech is here to help even if you missed the deadline this year.
Firstly, you should know that taxes are typically due April 15th, often extended to about three days after if you have any problems filling them. However, if you file them late, there is a failure-to-file penalty and then a failure-to-pay penalty. The penalty for filing late is usually 5 percent of the unpaid taxes for each month or part of a month that a return is late. This penalty will not exceed 25 percent of your unpaid taxes.
Filing for an extension requires filling out Form 7004 which regards applying for “Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns”, or Form 1138 that deals with “Extension of Time for Payment of Taxes by a Corporation Expecting a Net Operating Loss Carryback”. These forms must be submitted before April 18th.
If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax. Working with an accounting, payroll, and HR solutions company like PayTech that can help you get your taxes done correctly and filed on time. PayTech allows you to get back to doing what you do best: running your business.
