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Many business owners are overwhelmed with the day-to-day responsibilities involved in running a company. As such, meeting tax season deadlines is often challenging. If the due date came and went and your business tax return still hasn’t been filed, learn about the consequences you may face and what action to take next. The following information will help you avoid problems with the IRS and incurring more costs that cut into your bottom line.

What to Know About Filing Your Business Tax Return Late

Can I file my taxes after the deadline?

You can file a tax return at any time, even after the deadline has passed. However, if you are due a refund, you must file and claim it within three years of the original due date. You also have the option of filing an extension, which will provide five or six extra months to submit a return.

What are the penalties for filing taxes late?

business tax returnIf no extension was filed, fees will begin accruing from the day after the original deadline. The failure-to-file penalty is 5% of the tax bill that is owed for each month the return is late and will not exceed 25%. It’s difficult to pay your taxes before filing them, so it’s likely you will also be subject to the failure-to-pay penalty, which is 0.5% of the unpaid tax bill for each month that you carry a balance. If you don’t owe any money, there is no penalty for filing late.

What if I can’t afford my entire tax bill?

Even if you don’t have the means to pay all of your tax obligations, file your business tax return as soon as possible. This will keep the failure-to-file penalty from increasing. You can then request to set up installment payments or petition for an Offer in Compromise to reduce the amount you owe. 

What should I do if the filing deadline has passed?

If it wasn’t possible for you to file on time, there are ways to reduce late filing fees. First, if you can show a reasonable cause for not filing, such as a natural disaster or theft of financial records, the IRS may provide penalty relief. Second, you may be forgiven any accrued penalties if you can show you received incorrect written advice from the IRS. Finally, consult an accountant for help with preparing and filing your return quickly.

 

Whether you filed an extension or simply missed the deadline to submit a business tax return, Michael C Davis CPA CGMA will get your tax records up-to-date with the IRS. Backed by nearly 40 years of experience, he and his team provide entrepreneurs throughout Summit County, OH, with high-quality tax prep services and expert financial advice. They’re familiar with current tax laws and offer effective solutions for minimizing late filing fees. Call (330) 650-1344 to schedule an appointment or visit them online to learn more about tax due dates.

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