Corporations that file their tax returns late may be faced with penalties from the IRS that extend well into the future. If your business is behind on its tax returns, you should seek the help of an experienced Roseville accountant specializing in late corporate tax returns.
The CPAs that work with Roseville’s Cook CPA Group have the dedication, experience, and knowledge to help businesses with tax returns that are past their deadline throughout the Roseville area. The team of accountants at Cook CPA Group are prepared to file your business’s late corporate taxes so that you can focus on creating a quality experience for your customers.
Penalties for Late Tax Returns in Roseville, California
The IRS prefers that you pay taxes as soon as possible. If you do not, they can impose consequences in an attempt to persuade you to file and pay your taxes. Use the help of an experienced corporate tax accountant so that you can face as few penalties for filing late tax returns as possible.
The following are possible penalties that corporations can face for failing to file their tax returns:
Withholding Refunds
Often, after filing a tax return, a taxpayer will be entitled to a refund for the amount that they overpaid on their taxes. However, if you have failed to file tax returns for any particular year, the IRS may hold your tax refund until you file your late return. Failing to file your taxes on time may also affect your ability to claim benefits such as tax credits.
Filing a Substitute Tax Return
When a business fails to file its own tax returns, the IRS may file a substitute tax return for them. The substitute tax return, however, may not include all of the deductions and credits that the taxpayer earned, which can result in losses for the taxpayer.
Before the IRS files a substitute tax return for a taxpayer, they will send a Notice of Deficiency to the taxpayer. This Notice gives the taxpayer a period of 90 days to file their past-due tax return or to dispute the substitute return before it is filed by the IRS. It is advisable for businesses to respond to Notices of Deficiency as soon as possible.
Having a Tax Lien Placed on Property
The IRS may place a tax lien on your property if you fail to pay your taxes for long enough. The IRS places a lien on your property to alert all of your other creditors to the fact that the IRS’s debt takes precedence over theirs. A tax lien can impact the well-being of your business in many ways, including decreasing your chances of being able to acquire loans, increasing interest on loans, and making you susceptible to having your property seized, among other things. In some cases, tax liens can have an impact on your personal finances as well.
Tax liens can be avoided by responding to IRS notices about unfiled taxes in a timely fashion. If you have not filed your taxes because you can’t pay the amount, it is still advisable to file your taxes as soon as possible, since you will likely be able to enter into a payment arrangement with the IRS.
How to File Corporate Back Taxes with a Roseville Accountant
When you prepare to file late taxes, you should make sure that you have the necessary information. You will need profit and loss statements, information about employees, and other data about your business’s finances. If you are missing information, it is likely that the IRS will be able to help you locate the information you need, such as a business account transcript.
Before you file your back taxes, you should understand the way your business will be taxed. This will be determined by whether your business is classified as a C corporation, an S corporation, or something else.
Corporations will use Form 1120 to handle tax filings. Those who are filing late taxes should note that late taxes cannot be filed electronically; they must be sent through the mail.
How a CPA Can Assist with Late Corporate Tax Returns
A CPA can help people who are filing late taxes for their businesses by ensuring that their returns contain accurate information. Filing tax returns that are inaccurate can lead to additional penalties and further complicate your situation.
A Roseville late corporate tax return accountant can also help by vouching for you to the IRS; they will know the correct things to say to present your situation in the best light. If you have been unable to file your taxes because of unfortunate circumstances, such as an illness, natural disaster, or other unforeseen event, an accountant will be able to help you clearly communicate that fact to the IRS.
If necessary, a CPA can help you request an installment agreement, ask for Currently Not Collectible (CNC) status, make an Offer in Compromise (OIC), or file for bankruptcy.
Roseville CPAs Available to Prepare Your Late Corporate Taxes
If you would like assistance filing corporate tax returns that are past due, get in touch with an experienced Roseville corporate tax accountant from Cook CPA Group. The accountants that work with Cook CPA Group will utilize their experience to help you take control of your tax returns and avoid hefty penalties.
