Some small business owners might be willing to put off filing their taxes because of a concern over cash flow troubles, however luckily there are alternative small business funding programs to help them cover these costs if need be. Even though filing business taxes can be resource-draining onerous process, it is still something that small businesses should get out of the way as quickly as possible.
The tax season officially began from January 19, 2016 for businesses. The official deadline of this year’s tax season is April 18, 2016 for small businesses. It is essential for small business enterprises to take the required steps to timely file their business tax as soon as possible. By means of getting the small business taxes out of the way promptly, entrepreneurs have a better initiative over what the business’ economic responsibility will require.
Waiting until the last minute to get this process performed will augment the likelihood that an unanticipated cost takes place. Additionally, mixing up to locate the appropriate credentials, paperwork reports and receipts getting on March 14 also develops the possibilities for making an expensive, last-minute mistake.
Not Filing On Time
Whether due to the shortage of finances to pay business taxes or because of a misunderstanding, failure to file business taxes promptly will bring in a financial penalty. Not only can this be a large fine at the first consideration, however missing the cut-off date will continue to increase interest until the return is filed.
Although the business enterprise is incapable to pay the taxes, it’s very important to file the correct paperwork. If indispensable, it’s feasible to set up a payment plan with the Internal Revenue Service that enables the business enterprise to make installments on the cash owed.
If required though, there are time extensions that can be filed additionally. Sole proprietors can file a Form 4868, even as all other types of companies can file a Form 7004. These extensions do not take away or lessen the amount of cash owed to the Internal Revenue Service; however they produce further time for small business owners to discover the important resources, for instance a small business loan.
Meeting Federal Health Care Deadline
Possibly one of the very important reasons to file business taxes early includes the newly executed Affordable Care Act. The new healthcare law has more than a few conditions that small business owners need to be aware about.
In particular, the new Affordable Care Act compliance policies enacted 2016 suggest businesses with 50 or more full-time workers should additionally offer workers with the Internal Revenue Service Form 1095-C, which serves a healthcare W-2. Same as the cut-off date for giving workers an average W-2, the 1095-C should also be delivered to employees by February 1st.