Tax Deadline just passed and you can no longer file an extension. It came the same time it always does so what changed? More procrastination.
Did you know most people that procrastinate do this because they do not want to face the debt that they may or may not have with the IRS. Do you know what this does? Cause more issues with the IRS especially if you owe taxes!
There was a client, John, that came to us after the April 15th deadline to file their taxes with us.
This client did not file an extension. Once we did get the taxes completed, not too long after he received a letter from the IRS saying he owed additional penalties for filing late. Yes! This is actually a thing.
If you didn’t know this was a thing, then you may not be aware of the other issues that could be caused from just not filing the tax return:
- Increased Penalties – owners may face higher penalties missing deadlines especially if a large amount of taxes are owed
- Cash Flow problems – paying taxes late can strain cash flow in a small business especially if penalties and interest accumulate
- Inability to Access Financing – When you have tax issues, this makes it difficult to access financing or credit which hinders growth and expansion
- Legal Consequences – not being compliant which causes fines, penalties, or legal action
- Taxable Income from Other Sources – if you have income from outside sources such as: investments or rental properties, these could add to the overall tax burden
It is imperative that if your taxes have not been filed for your small business, whether old or new, be sure to file your taxes. There is no income limit that you must have in order to file your business taxes. Once you have an EIN, paid for an expense, or made a sale from your business, you should file your taxes. There are other issues that could arise if you are not filing taxes for your business.
Moral of the story is to make sure you are filing your taxes by the deadlines and you are paying any taxes that are owed as soon as possible. If you need to file your taxes, please reach out for assistance so you can stay compliant.
**Disclaimer: The information provided in this post is for entertainment purposes only and is not meant to take the place of professional legal, accounting, or financial advice. If you have any legal questions about this post or the subjects discussed, or any other legal matter, you should consult with an attorney or tax professional in your jurisdiction (i.e. where you live) or send us a message.
