Archives for IRS

Four Reasons Tax Season Doesn’t End in April for Small Businesses

It is a common misconception that tax season hits a small business owner one time a year. In fact, the small business owner is being periodically taxed, which makes it important to stay on top of the deadlines to avoid unnecessary fines. If you are living in the Miami area, it is recommended to get in touch with a company that performs bookkeeping services in Miami in order to ensure that you are complying with the proper deadlines. According to Miami bookkeeping, here are four reasons that the tax season does not end in April for small businesses:

1. Estimated Tax Payments. If a small business is paying a quarter of what they owe, they usually break up their balance into estimated tax payments that may be made quarterly. If your business has decided to do this, then it is imperative that you stay on top of the deadlines.

2. Payroll Taxes. Payroll taxes are something that needs to be paid quarterly as well. Many businesses are unaware of this fact and it causes many misunderstandings when they are billed for their taxes many times per year.

3. Sales Taxes. Sales taxes for any prospective sale made also need to be paid by small businesses. By staying on top of this, small businesses owners can rest assured that they will not be penalized.

4. Property Taxes. If your business owns an office space, be prepared to pay the relevant property taxes. This is a common misconception that many people are unaware of and need to factor into their taxation calculations.

The reality is, a small business owner is being taxed year round. The important thing to remember is that you should have a calendar setup so that you are not missing any essential deadlines. By doing this, you will be able to avoid any unnecessary fines and stay in the good graces of the IRS.

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Two Smart Ways to Deal With an IRS Audit

Being selected for an IRS audit is never an activity that a business owner or individual looks forward to. The key to mitigating an unfortunate situation such as this is to be prepared to deal with the audit so that it can pass and you can move on. If you live in the Miami area, it is highly recommended that you consider consulting with a company that provides bookkeeping services in Miami. According to Miami bookkeeping, here are two smart ways to deal with an IRS audit:

1. Hire a Professional. If you are being audited and there is a great deal of capital at stake, then it is best that you hire a professional bookkeeper for advice. This will mitigate your risk a great deal and assist you in avoiding common IRS traps that could cost you a great deal of money in the long run.

2. Be Forthcoming. One of the important things to remember is that honesty is the best policy. This principle also applies to your IRS audit. If you try to hide your financial information, the IRS is going to find it. Additionally, they are going to charge you double if not triple what you previously owed in penalty fees. Additionally, they can also give you jail time in certain circumstances. Thus, it is likely best that you consider being entirely forthcoming, paying your obligations, and moving on. This will likely produce the best income for your personal or business finances.

When faced with an IRS audit, it is imperative that you are forthcoming from the start and face the audit you are dealing with. Many individuals and business owners fail to do this and end up paying more as a result. If you are able to do this, you will avoid many pitfalls that are commonly faced with IRS audits and be able to move forward with your personal or business finances.

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Two Tips for Dealing with an IRS Audit

Given that tax season is upon us, it is always a great fear to both consumers and businesses that they will face an audit from the IRS. If you are living in the Miami area, it is wise to consult bookkeeping services in Miami to ensure that you are covered. Miami bookkeeping will allow you to navigate your tax return in a way that you will be prepared for an IRS audit. Consider these two tips in the event that you are faced with an IRS audit:

Keep All Of Your Credit Card Receipts And Product Purchase Invoices.

It is important to have paperwork or digital files to show the IRS in order to prove your innocence. Without these records, you will have to pay a great deal of fines because you will not be able to show that you complied with the tax code. Keep these records in an organized and safe place in order to avoid headaches later on.

Hire An Assistant For Your Audit.

If you are in the position that the IRS is knocking on your door, it is best to hire someone to go through your case who has your interests at heart. This way, you can be briefed and prepared for any questions or documents that the IRS may request from you.

If you are faced with an IRS audit it is important to not panic. Many times, they are just completed at random. That being said, if you have been dishonest, be prepared to pay the consequences. The important thing to remember in these cases is that honesty is the best policy in order to save you many fees and problems down the road. Additionally, by seeking assistance with your case, you will have far less to worry about as you go through your IRS audit.

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