Prepare Your Business For Tax Season & Avoid Tax Scams
In order to prepare your business for tax season this year, you will need a few key things. Some of these include last year’s tax returns as well as a detailed list of business expenses. You will also want to be aware of tax filing deadlines — when to file without penalty, when any payments may be due, and if you’re using an accountant, when they need the information in order to successfully complete your return among the many demands of business tax season.
Here are some tips on how to avoid stress and prepare for a seamless tax season:
Have Your Records in Order – The first thing you will want to do is gather all documents and records before doing your taxes so that you are not scrambling to find them when you need them. You will want to have everything collected together beforehand. Items may include prior tax returns, receipts, bills, invoices, budgets, expenses, business credit card history, payroll, and anything else you can think of. All of this will help to expedite the process.
File Your Taxes Early as Possible – You do not want to be preparing your business taxes right before the deadline because there is a lot to do – and it will only add unnecessary stress. There are almost always surprises that come up which will require more time to resolve. Plan ahead and schedule an appointment with your accountant or tax preparer sooner than later.
Use An Accountant – Most businesses use an accountant or other professional to take care of their taxes, but there are some business owners who decide not to use one for one reason or another. Self-preparing your taxes takes a lot of time, and if you’re not fully qualified – you will likely make costly mistakes.
Protect Your Business From Tax Scams
Tax season is all about money, which is a prime motivator for scammers. People worry about how much they will have to pay or are wondering how much they might get back in the form of a tax refund. Scammers can play on both of those money-related emotions. In order to avoid tax scams, there are several things you can do:
- File Your Taxes Early – Filing early lowers the chance that someone files a false tax return before you, which is essentially how fraudsters work.
- Shred Documents – All that is required to file a false tax return in your name is your legal name, date of birth, and your social security number. Use a paper shredder to securely discard old billing/account statements as well as other financial documents you no longer need. Most ID theft happens via the trash.
- Hang Up When the “IRS” Calls – The IRS will not communicate with you via text, social media, or email. If someone calls you stating they are from the IRS – hang up – the IRS initiates most communication by physical mail. Unless you have already received several notices from the IRS, it is extremely unlikely they will contact you by phone.
You can keep up-to-date with tax scams and consumer alerts via the IRS website.
Attorney Providing Tax Appeal Services & More for Your Business
Ciulla & Donofrio, LLP is proud to provide businesses in the North Haven, CT area with a variety of legal services. We pride ourselves on client communication and ensure you are kept in the loop throughout every stage of your case. If you have had an issue with your taxes and would like to appeal, we can assist and represent you. Learn more about our commercial law practice areas and contact us today for more information.