While this guide brief guide offers you a basic overview to file business taxes, you just can’t overemphasize the importance of professional tax defense partners – more on that later. From beginning to end, here’s the mission-critical information you need to get your income taxes filed.

Organize Your Records

Before starting off with anything, collect every appropriate business record. What is appropriate, you ask? Based on the type of your business entity, you’ll need a lot of things, but start here:

• Employer identification number
• Personal information (DOB, address, SSN, etc.)
• Tax returns of last year

You’ll also need to gather everything related to your expenses and earnings. On the earnings side, this could be:

• Invoices you sent to clients
• Records of goods sold to customers
• Sales records that jot down money coming into your business

On the expenses side, gather receipts for any costs you incurred during operation. Think of the following aspects:

• Client lunches
• Employee salaries
• Mileage records
• Office supplies
• Rent receipts for your small business

Find The Right Tax Form For Your Business Structure

Now, it is time to get your hands on the right tax form after having your records sorted – and this relies on what kind of small business entity you operate. Typically, it would lie in one of the following brackets:

• Any small business that pays contractors
• C corporations/LLCs that elect to be corporations
• Partnerships or LLCs with multiple members
• S corporations
• Sole proprietorship or LLCs with one member

File Your Taxes Online

In 2018, 92% of Americans filed their taxes online. This is because filing business taxes online:

• Doesn’t need you to fill out paper forms
• Gets your return to the IRS swiftly
• Is as safer and secure than sending your forms in the email
• Let’s you obtain your refund electronically through direct deposit

While e-filing (or finding your taxes online) with the IRS, you have two options, which are, free file and free file fillable forms. If your AGI (or adjusted gross income) for the year is less than $69,000, you may use the free file. If it’s more than that, free file fillable forms are your only option.

Apply For An Extension If You’re Late

Of course, the deadline for filing your small business tax return will rely on your business entity, however, if you’re finding yourself behind the eight balls, don’t fret – applying for an extension is always an option. Although this offers you some additional breathing room for getting your paperwork filed, it’s imperative to note that you still have to pay your approximated taxes by the original deadline.

If you’re looking for one of the best tax defense partners for income tax services and filing business taxes in Salt Lake City, BoswickTax is where you should be headed.

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The main reason e-filing, or online tax filing services, has become so famous is because it’s easy, quick, and everything gets processed faster. Here’s the breakdown of the advantages e-filing offers:

Convenience

The days of arranging an appointment with your accounting office are long gone. Now, you don’t need to wait around while they punch a calculator, simultaneously asking you for your signature.

Online filing can occur from anywhere. The internet is a sole requirement for any web-based tax program, and therefore, your tax office is virtually located anywhere.

The programs allow users the confidence that they won’t be subject to any penalties for incorrectness and that they’re not missing out on anything. You can also start filing, go as ahead as your time permits, save what you’ve already finished, and return to it later. To sum it up, e-filing offers you convenience.

Electronic Records

The practice of keeping the records of your taxes up to seven years is highly recommended. It may be risky to throw out old tax records. If not disposed of properly, they can open you up for identity theft. In contrast, that stack of past taxes will continue to grow every year, taking up more space. Fingers crossed for no fires or floods.

E-filing gives you the luxury of keeping as many years of history as you want, securely stored online and not using any physical space in folders or drawers. This makes information easy to retrieve.

Faster Processing

When you file online, everything processes faster. You won’t have to go through every instruction for every form you’re filing and determine what number goes in what box. E-filing asks intuitive and simple questions, making it clear where to input information and filling out the appropriate forms on its own in the back-end.

With electronic signatures, you won’t even have to write your name a million times for filing. Just draw your signature on the trackpad of your device, copying and pasting it when indicated to do so.

Besides the time that you actually spend on your PC filing your tax returns, finishing them online also indicates that the information gets passed on the back-end faster, too. As soon as your end is finished, the information is directly sent to the IRS on an immediate basis. This gets rid of any wait-time for the postal service to submit the documents, the mailroom of IRS to sort them, and then eventually get them to someone who can get the approval.

This also means that, in case you get a refund, you’ll get that back quickly too. Not only because the information of tax return can be quickly processed, but also because features such as direct deposit ensure your tax refunds are wired automatically to your bank account, in contrast to having to wait for a physical check and being at the mercy of the postal service.

Accuracy

The accuracy is the most important part about filing taxes. Giving incorrect or incomplete information to the IRS may result in hefty penalties, fines, and even jail time. Filing online ensures that the forms sent to the IRS will be accurate, as long as the information you input is accurate.

In the majority of the cases, the e-filing program guarantees precision where, if there is any mistake, they have the responsibility of incurring any fees and correcting them.

If you’re looking for online tax return or tax preparation services in Utah, look no further than what BoswickTax has to offer. Contact us now to know more!

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