Top Reasons To File Your Business Taxes In February
Many people around the country are used to filing their taxes early. There are many reasons for filing your business taxes before the deadline, and it is essential to take advantage of the benefits that come with being an early bird.
At the time of this blog, the 2021 tax season will kick off on February 12 and conclude on April 15. The IRS expects to receive over 150 million tax returns over the course of this time, so why not be one of the first to file?
There are many benefits to filing early, but filing as early as February can be even better.
Here are the top reasons to file your business taxes in February:
Get Your Tax Return ASAP
The earlier a person files their business taxes, the earlier they can expect to receive their tax return – it’s that simple! Consider starting to work with your accountant in the next few weeks to prepare the necessary paperwork and file as soon as possible.
Receiving a tax return can mean extra money for your business, so why wait? Contact Taurus CPA Solutions today, and we’ll help you file your business tax return in no time.
Avoid Late Penalties
As mentioned above, the current tax deadline is April 15, 2021 for individuals and C-Corps, but it is March 15, 2021 for S-Corps and Partnerships. And if you miss it, you’ll pay the price. If your business tax return is received after the deadline, the IRS can charge you up to 5% of the amount due for every month you’re late (up to 25%). This can be a hefty sum of money for many small businesses, so be sure to file early or on time to avoid getting penalized.
However, it is essential to note that a business can file for an extension. Just as long as the extension is requested before March 15 or April 15 (dependent on the tax entity type), a company will have a little longer to file. Just be sure to note that while this may give you extra time to actually file your returns, the taxes are still due by the due date, and you may run into interest fees or late-payment penalties if you aren’t paid in.
Reduce The Chances of Identity Theft
Tax season is one of the most popular times of the year for identity theft. With many documents traveling on foot and electronically, 24/7, personal information is put at risk more than ever during this time.
To avoid running into an identity theft crisis for your business, consider filing your taxes as early as February 12, 2021. One of the most common ways for a person to steal an identity is by filing a fake tax return under you or your business’s name. To make sure this does not happen to you, file your business tax return as early as possible, so there is no tax refund for them to steal from you or your company.
Businesses that fail to prepare and plan for taxes often end up with unexpectedly large tax liabilities and struggle to make adjustments to pay them. Taurus CPA Solutions works to minimize these unwelcome surprises and prepare for a wide range of potential outcomes.
Above all, we strive to minimize your state and federal tax liability, putting your company in the best possible financial position for the remainder of the fiscal year and beyond.
If you would like to learn more about how Taurus CPA Solutions can help your small business, please contact us today.