Why You Shouldn’t Procrastinate Your Tax Filing in 2020

May 21, 2020 in Accounting, Resources, Taxes

You may have months left to file your taxes, but processing them as soon as you can leave your feeling relaxed and far from bouts of headaches. You’ll be saving more than just your head, however, as the sooner you file, the sooner you’ll know if you have any money returning. You’ll also be protecting your business from any fraud.

If you’re not convinced and would rather wait for the tax season, consider how filing your taxes early can help protect your company and your investment. Here are several tips why you shouldn’t procrastinate tax filing, taken from the experts.

Reason #1: You’ll reduce the risk of exposure to tax-related identity theft

Just over a month into the 2019 tax season, the IRS identified more than 3,500 tax returns that claim a total of $15.8 million in fraudulent refunds. The statistics show the agencies the IRS managed to catch, but unfortunately, plenty of them remain rampant. These identity thieves use Social Security numbers (SSN), which they steal to file fraudulent tax returns and get a refund from the government. Tax season is a gold mine for identity theft, as millions of SSN just float about. If you wish to protect yourself and your company from these threats, file your taxes during the low season!

Reason #2: If you’re getting money back, why not get it early?

Most taxpayers get a refund and out of 155.9 million tax returns filed in 2019, 111.8 million qualified for a refund. If you file your taxes earlier, you’ll be able to get the money back sooner. Why is this crucial? As a business owner, this means three more months of investing, which allows that money to gain value and returns. It could also mean paying debts three months earlier, which cuts down interest rates that would have led to more costs. While it may not seem like much in hindsight, three months of every single year is a lot for business growth.

Reason #3: The IRS will favor you more

While plenty express contempt for the IRS (Who likes taxes, anyway?), it’s one of the most underappreciated agencies in the government. Contrary to what the public regards them as, the people behind the IRS work with all taxpayers, especially those struggling with their bills. There are structured payment plans available, usually offered with generous terms and grace periods. IRS loves helping you pay your taxes, but filing those taxes is another story. Taxes for entrepreneurs is an incredibly complicated process, and the people behind the agency will not be able to help you during a hectic tax season. If you wish to ask them for help, do so in February and March!

Conclusion

It might seem reasonable to just go ahead and file your taxes when it’s due. Never overlook the stress and pressure tax season can bring, however, as the last-minute stress is real. You’ll do well to wrap your taxes in advance, as you’ll be saving plenty of time.

You’ll also be able to protect yourself from identity theft, get your money back early, and become friendly with the IRS. For business owners, hiring a tax service may be the best option. This could mean saving so much more, as taxes tend to be much more intricate when it comes to businesses.

We offer the best accountants for entrepreneurs in Boston, as we focus specifically on businesses like yours! Let us take the stresses of taxes and bookkeeping away from your shoulders.

New ruling helps California single-member LLC businesses save $800!

December 18, 2019 in Taxes

The California Franchise Tax Board (FTB) in its FTB Legal Ruling 2019-02 reverses its long standing position and announces that limited partnership treated as disregarded for federal tax purposes is NOT subject to its annual limited partnership fee (minimum tax of $800) and income tax return filing. This means the limited partnership can file for refunds for its previously paid annual fees and no income tax return is required going forward!

In short, you save $800. 😀

Contact us today to see how we can help you. Always looking to help founders and small business owners!