Hi Abe! I own a trucking business and taxes are the last thing I want to worry about each year. It is tough to find the time to get my documents together while ensuring I haven’t missed anything, and on top of that, I’ve got my business to run. Is filing taxes really that important? What if I fall behind?
Great question! You are not alone. Many business owners ask themselves the same thing! Let me try to reframe filing your taxes for you and look at it from a different perspective. When I am reporting business income and filing a return with the IRS/State authorities, I try not to think of it as something I have to do to stay out of trouble. Don’t get me wrong, we all have to file our taxes and follow the procedures put into place, but there is more to it than that. Instead, think of filing your return and reporting income as putting the power in your hands. You are telling the IRS and/or State how your business functioned, and you are the one who reports the final income figures, not the other way around. Now we have to follow the policy and procedures set in place when we do this, but that is a part of that Better Guidance and Smarter Decisions that Abacus offers. There is an abundance of Transportation specific legislation that we can ensure you take advantage of!
We have several tips for you to accomplish filing your taxes this year:
1) The first recommendation is keeping up with recording expenses and business related information throughout the year and not scrambling at the end of the year to try to piece it together. Taking some time at the end of each day, week or month to record expenses can go a long way in saving you some headache!
2) Second is the using the filing extension. This allows some breathing room and moves the individual filing deadline from April 15th to October 15th. With the extension, keep in mind that the filing date is extended, but the payment deadline remains April 15th. The best way to minimize that balance owed each year and avoid underpayment penalties is by prepaying your tax throughout the year with Quarterly Estimated Payments.
If not filing is something that has continued on for a number of years, then there is no better time than now to get caught up. Penalties and interest accrue with time. You have worked hard to generate your income, so do not pay more than you have to! There are ways to mitigate the impact that past owed taxes pose, but the first step is getting an accurate filing prepared and filed.
Running a business is highly rewarding, but it can be tough to juggle all the tasks that come with along with it. Abacus CPAs is here to help! For additional resources, contact us at 417-380-5000 or transportation@abacuscpas.com.
