Penalties levied against business owners for past-due remittances of estimated taxes is a tragic waste of an entrepreneur’s profits.
Most taxpayers who fail to remit at least 90 percent of the total federal income tax due will incur a penalty. No ones likes penalties, and that’s why it’s important to be mindful of the IRS tax calendar.
For those who are self-employed, it’s all too easy to let those deadlines slip by, because all successful entrepreneurs have a dozen or more tasks on their to-do lists at any given time. And the other onerous issue is that tax forms and requirements are overly complex. Obfuscating regulations with poor grammar certainly do not make tax compliance any easier.
The optimal solution to avoiding penalties for underpayment is to forge a collaborative relationship with a tax-prep professional familiar with small-business tax compliance.
And there’s another benefit to having a second set of eyes looking over that commercial tax return. One moment of numerical dyslexia could lead to an underpayment penalty or even flag a return for an audit.
The best way to deal with the IRS is to avoid dealing directly with the IRS. Despite their attempts to reinvent the agency as a helpful assist to taxpaying business owners, we all know that’s never going to happen. (One look at their onerous and confusing regulations will dispel any thoughts that an IRS auditor is your friend!)
Tax prep is complicated, especially when it comes to commercial enterprises. We can help take the stress out of tax prep so you can keep the money that is rightfully yours.