You can get a clue on how to file your small business tax through the IRS website. For a complete checklist on how to get it down, you are having below a step by step guide on how best to fill the tax form so that you can avoid last minute tensions:
Your Business Records
Before you can be sure of getting things right, you need all the relevant business records to be in perfect order. What you will need in terms of records has the size of your business. But as a general take that covers both small and large scale business concerns; you will need the following records on standby:
Personal information which includes the likes of SSN, address, DOB, etc
- 2019 tax returns
- Employer Identification Number which you can get from the IRS website
- Invoices you sent to clients
- Records of any goods sold to customers
- Sales records that note money coming into your business
- Rent receipts for your small business
- Office supplies
- Employee salaries
- Client lunches
- Mileage records
The above represents the records for both income and expenditure and you will get to know where your enterprise falls into from the info on the IRS form. With the records all at your back and call, you can start the process of filing the tax form in line with the structure of the business that you are into.
There are several options available; it is now left for the business owners to sort things out by getting the right fit among the options that are available online.
Fill The Form Online
It is best to fill your tax form online because it will save you time and a lot of bottlenecks. In as much as you can retrieve all the info stated above from the IRS website, you are good to go in your resolve to fill the form online. Here are the benefits of carrying out the process online:
- You do not require filling out paper forms
- It is faster to get the return to the IRS
- You will receive your refund electronically via direct deposit
- It is secure or safer than sending your forms in the mail
Details of how each of the processes can be undertaken can be drawn easily from the IRS website; you are covered completely and will get the process done in a matter of minutes with all the records by your side without stepping out of your comfort zone!
The deadline for filing your tax form will be decided by the nature of your business. If for one reason or the other you missed the deadline for 2020 for your business concern; you can apply for an extension. It will give you some breathing space to get yourself sorted out.
However, your estimated tax will be enforced by the original deadline despite the situation that you find yourself.
The majority of the business’s concerns are required to pay tax four times a year in estimated installments on estimated income.
The checklist above represents all that every entrepreneur will be required to carry out in other to fix the payment of their tax. Contact Today.