Business
This time of year is usually crunch time for filing and paying taxes, however, a lot has changed in the past week with the Coronavirus pandemic. COVID-19 is affecting people in countless ways, especially financially. In order to alleviate part of the financial burden on Americans, an extension to the tax filing and payment deadline has been granted. I’m sharing important tax information, thoughts, and advice on filing business taxes during this unprecedented time and what you need to do to stay on top of it all. Find out how recent changes to the tax payment deadline will impact your business! What we’re talking about How Filing and Paying Taxes Typically Works Coronavirus and Changes to the Tax Filing & Payment Deadline Do I Still Need to File an Extension for Filing Tax Returns? Reasons You Don’t File Your Taxes On Time How Filing and Paying Taxes Typically Works When thinking about taxes, April 15th is the first thing that usually comes to mind. This due date applies to both filing taxes and paying taxes. If you aren’t quite ready to file taxes by April 15th, there is an option to file an extension for the paperwork, but in order to avoid penalties and interest, taxes still must be paid by April 15th, even if an extension has been filed. Coronavirus and Changes to the Tax Filing & Payment Deadline The Coronavirus pandemic has caused financial strain on many with businesses closing and sales down. To help Americans during this financial hardship, a 90 day extension on tax filing and payment has been granted changing the deadline to July 15th. This means that you have until July 15th to file your taxes and pay them, but if you can do them ahead of time, I suggest you do so. If you aren’t able to pay your taxes on July 15th, then you can file for an extension, but you will still need to file your taxes by then. Do I Still Need to File an Extension for Filing Tax Returns? If you are not prepared to submit your tax paperwork by July 15th, you have the ability to file an extension. Even if you file an extension, you still need to have your payment in by July 15th. Penalties and interest start incurring July 16th, so I suggest you take advantage of these 3 months of no payment or interest. Reasons You Don’t File Your Taxes On Time If you continuously don’t file your taxes on time, you need to look at the reasons why this happens. The most common reasons I hear for people to not file their taxes on time is due to not having enough time, not having a bookkeeping system in place, and not having a tax professional to help with the filing. You need to identify what is holding you back from filing your tax return, so that you can avoid this pitfall. Don’t put off filing your taxes! LINKS MENTIONED Biz Finance Survival Kit http://andismiles.com/survivalkit Catch Up Your Bookkeeping in 10 Days Free Workshop http://andismiles.com/workshop Panic Free Tax Prep (use code PODCAST at checkout for $10 off) https://andismiles.com/panicfreetaxprep/