Don't Neglect Your Business Taxes

Dec 31, 2023 By Triston Martin

When you own a business, you take on great responsibility for the company—ensuring that your business taxes are filed on time and appropriately should be one of your highest concerns. Do not avoid dealing with the issue of unpaid taxes owed by your business. You have the option of seeking advice from a tax expert who will be able to assist you in developing a strategy for settling your tax obligation.

How to Get Your Taxes Ready to File

Your business might vary depending on several factors, including how it is organized and where it is located. Tax regulations may come from any level of government, including the federal, state, and municipal levels. It is in your best interest to get familiar with your tax obligations well in advance since you may be required to make taxes at various points during the year. In general, the following categories fall under the category of business taxes:

  • Tax on income
  • Taxes for independent contractors
  • Tax based on estimates
  • Tax on employers
  • Excise tax

The several types of business taxes each have unique tax regulations, business duties, and essential documents. On its website, the Internal Revenue Service (IRS) gives comprehensive details regarding the necessary forms and information about which forms may and cannot be electronically submitted. Your state and local governments are the best sources of information about the state and local tax obligations that apply to your business. These obligations normally consist of income and employment taxes.

How to Pay Your Taxes Online and E-File for Your Business

Businesses can file their federal tax returns electronically on the IRS's website. Whether you get a paycheck, are self-employed, or own a small business, if you have an annual income of $73,000 or less, you can file taxes online via the IRS Free File program. This is true even if you are self-employed. You are eligible to utilize the IRS Free File Fillable Forms if the income from your business is more than $73,000.

If you opt to use the IRS Free File Fillable Forms, you should ensure that you are comfortable doing your taxes before doing so. Using this approach, you will get minimal advice, and the system will not check for any mistakes that may have been made. You can utilize the Modernized e-File (MeF) system of the Internal Revenue Service (IRS) to file returns for both business income tax and employment tax. Your specific filing requirements will determine which of the IRS-approved Modernized e-File (MeF) business providers is the best fit for you to use.

Since submitting your tax documents and paying to the IRS are two distinct stages, you must complete both transactions. You can pay your taxes directly by attaching a bank account to your tax filing profile, or you may pay with a debit or credit card instead. You may also sign up for the Electronic Federal Tax Payment System, which is a service provided by the United States government that is free of charge. Treasury.

E-Filing State Taxes

You will also need to make certain that you fulfill all of your state and local tax requirements, which will vary depending on the type of your company as well as the location of your business. Checking in with the administrations of your state and your city is the most effective way to stay up to speed on these policies. A few states enable taxes to file their tax returns electronically and even make payments through the internet. On the SBA website, you may search for your state's tax regulations to identify the state tax duties that apply to your company.

When Must A Business Pay Taxes?

A company's tax payment deadlines will change depending on the many types of required taxes. Regular payments (quarterly, monthly, etc.) are required for certain taxes, but the annual filing date (middle of April unless you ask for an extension, which delays the yearly due to October) is required for others. If you need to ask for further time, the usual April 30 deadline becomes October 1.

To Properly File My Business Taxes, Which Receipts Should I Keep?

Keep the receipts from any business purchases you make for three years to demonstrate to the Internal Revenue Service (IRS) that the purchases were made to do business. The Internal Revenue Service suggests preserving supporting business papers such as gross receipts, paperwork for purchases, evidence of costs, and records to accompany assets.

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