Every working adult knows how important it is to file taxes, correctly and on time. While you might be able to avoid this process for a few years, the Internal Revenue Service is vigilant, and will eventually come looking for its money.
As a business owner, the need for proper tax filing is even more important; however, many small business owners struggle with this task. Cash flow can often be tight during the first few years of operation, and after meeting the demands of payroll, business owners often have nothing left to pay the tax man. They promise themselves that they’ll get to it later, but later never seems to arrive.
Accounting services for small business is an easy way to prevent this from happening, but if it already has, Remote Quality Bookkeeping can still help.
How Do Businesses Get Behind On Taxes?
“One example is that a business suffers an economic slump and, instead of paying taxes, it pays vendors. The biggest issue I encounter is a business’s failure to remit payroll tax withholdings. Because payroll withholdings are fiduciary taxes (meaning it has been collected from employees on behalf of the IRS), the IRS will hold the business owners, accountant, and any other responsible parties personally liable for the tax,” Terri E. Brunsdon, a CPA and an attorney, explained to QuickBooks.
What Are The Penalties For Failing To Pay Business Taxes?
- Filing after the deadline will earn you a fine that’s a percentage of your total return.
- Failure to file at all will earn you a tax lien, which means that if and when you are forced to file for bankruptcy, your assets will be used to pay what you owe the IRS before any other creditor gets paid.
- Failure to pay and/or work with the IRS to set up a payment plan for your back taxes will earn you a tax levy. This basically means that the IRS can come and seize your assets with no court case, notice, or warning.
Accounting Services For Small Business Can Help You Avoid IRS Trouble
Admitting that you’ve fallen behind on business taxes and asking for help is the first step out of this financial mess. Rather than digging through past bills, receipts, and payroll records, trying to figure out how much you actually owe, our forensic accounting experts can take care of this time-consuming burden on your behalf. We’ll even correspond with the IRS so that you don’t have to field those confusing phone calls!
Want to know more about our accounting services for small businesses? Contact Remote Quality Bookkeeping today.