Everyone has a responsibility to pay his or her taxes. There are severe penalties imposed by the IRS if you avoid or neglect a tax filing submission, and you don’t want to make life chaotic for the employees that are working for your company. The solution, then, is simple, and it furthermore requires you to stay on top of your finances and remain organized.
It can be tempting to leave everything to the last minute, but, if you do this you will likely miss accounting for a certain business expense, and it will cause unnecessary stress in your life. Plus, you will not get the best possible tax refund, either.
Every single company wants to do what they can in order to make profit in the long run, and thus receive money back, rather than pay more in taxes. If accounting for your industrial equipment financing, for instance, as a deduction will help reduce your tax payments in any way, why wouldn’t you do it?
This article will discuss why a business is entitled to a tax return, and what the process is like to apply for one in the first place.
A tax refund
A tax refund is:
A tax refund is a refund on taxes paid to an individual or household when the actual tax liability is less than the total amount of taxes paid during the tax year
Of course, this is something that applies to business ventures, as well. That being said, not every single organization’s structure will necessarily receive a refund. This will be explained in greater detail in the upcoming section.
Filing your taxes
One of the trickiest parts of tax season is finding a way to file your taxes in an efficient manner.
The structure of your business will largely impact this process, and therefore whether or not you are eligible for a tax refund as well.
Larger scale C-corporations are a common example of an entity that can apply for a refund, given that the tax submission for this structure is understood as independent from the owner.
The business is seen as a separate entity, and if it is necessary to pay more taxes than what is required on return forms, this enables companies to be eligible for a refund, particularly due to the sales or payroll related taxes that were paid. Payroll taxes qualify for a refund if there is an excess and overpayment on your account, whereas the sale taxes are imposed by the state in which you find yourself.
Yet another business structure that is qualified for a refund includes sole proprietorship, even if they are required to pay personal tax requests. Even as a self-employed person, you can benefit from filing for an income tax return, in order to get some money back.
At the end of the day, all of the necessary tax paperwork can be submitted electronically and doing everything online will help you get a refund much faster as well.
Meeting the deadline
The tax deadline that will allow you to account for the previous year’s funds is April 15, 2019. Remember not to get too caught up with meticulously filling out your forms to the point where you don’t submit them because you feel as if they aren’t ready.
The sooner you submit everything, the sooner you can also let out a sigh of relief as a business owner, over the fact that you no longer have to deal with this stressful process.
Every single company is eligible for tax deductions that will further help ensure that you limit the amount of taxes you have to pay.
The whole point of a refund is for you to receive money back, and thus pay lower rates. Anything you have paid towards the benefit of the company, such as acquiring equipment loans or accumulating interest rates on business loans, is eligible for a deduction.
Checking for an updated refund status
The IRS website clearly outlined the process for refunds in more detail, and you can particularly check the frequently asked questions. Most refunds are announced and issued in 21 working calendar days, and you can check for an updated status online, ensuring the IRS has accepted it to begin with. Is there an acknowledgement of receipt?
After a while, the online status will change from ‘return received’ to ‘refund approved.’
Getting help from an expert
As a result of how long the tax filing process can be, and so that you limit the amount of confusion that is caused from the process, it would be worthwhile for your business to get the help of a CRA professional or another tax-filing expert.
This will help ensure that you get the largest refund amount possible, and it will reduce the stress on the business leader, as they don’t have to account for everything by themselves.
Don’t assume that you are an expert in everything, even if you are the owner of your company. The chances are that you require assistance with submitting your personal taxes, so why wouldn’t the same apply for the benefit of the business? If anything, there is even more reason to get help when your organization is in question.
When tax season is finally upon you, remember to take a deep and long breath. As a business leader, it may be inevitable for you to not feel a tiny amount of stress due to the amount of paperwork that will need to be completed but remember that you aren’t alone. Rather than seeing this entire endeavor as something that will only make your business lose money, remember that tax refunds are one of the best ways for you to receive some of that income back.
Getting help from the experts can very well help you ensure that you are eligible for a higher rate of money back. While you want to ensure you pay off the interest rates for business loans that you accumulated, this is also a good example of a deductible that you can account for.
Tax submissions can often be long and complicated if you take into account all of the necessary paperwork, so start putting everything together sooner rather than later and take it one day at a time.