Filing taxes can be a complicated process, and it only becomes more complicated if they are filed late. An experienced accountant can help corporations file their late tax returns in a way that minimizes fines and fees while bringing the company into full compliance with the law.
The Sacramento late corporate tax return accountants at Cook CPA Group are prepared to assist corporations with filing late tax returns. The accountants at Cook CPA Group have the dedication, experience, and knowledge required to file late taxes as efficiently and accurately as possible, enabling you to continue providing quality services to your customers. If you would like to learn more about how you can set up a free consultation with the accountants at Cook CPA Group, get in touch today.
The Process of Filing and Paying Back Taxes
Filing late taxes begins with gathering all of the information needed to file your returns. The way your business is classified — whether it is a C corporation, S corporation, or another kind of entity — will determine how your business is taxed and what information you will need to file your taxes. Corporations that are filing late tax returns should know that late taxes cannot be filed electronically; they can only be filed through the mail.
For starters, you will need your wage and income transcripts, which you can request from the IRS. The agency will also be able to provide you with an account transcript, which includes information about estimated tax payments and other credits that were posted to your account. Gather any documents that have information about self-employment, additional sources of income, investments and properties owned, then review any deductions or credits you may be eligible to claim.
Once you have all of the necessary information, you can give it your accountant so that they can complete your returns. It is likely that you will owe taxes, though it is still possible that you will receive a refund. If you owe taxes, pay the amount due as soon as you can. If you are unable to pay the full amount, consider entering into a payment plan with the IRS.
Penalties for Late Corporate Tax Filing in Sacramento
There may be penalties associated with paying taxes past the date that they are due. For this reason, it is advisable to use the help of a Sacramento late corporate tax accountant from Cook CPA Group who can help you avoid as many fines and fees as possible. The following are potential penalties that corporations may face for filing late tax returns:
Tax Liens
If you go long enough without paying your taxes, the IRS may place a lien on your property. When the IRS places a lien on someone’s property, they are telling creditors that the IRS’s debt has a higher priority than other creditors’ debt. A tax lien can have an impact on businesses in several ways. A lien can reduce a business’s chances of receiving a loan, or it can raise interest rates on loans you already have. A tax lien may also make you susceptible to having your property seized via a tax levy.
You can avoid a tax lien by being communicative and responsive with the IRS. Make sure that you reply to all notices they send to you in a timely and thorough manner. If you are unable to pay your taxes right away, a payment agreement may be possible.
Substitute Tax Returns
If a business fails to file their tax returns for an extended period of time, the IRS may file a substitute tax return for them. This substitute return likely will not include the deductions and credits that the taxpayer earned over the previous year. This can result in a tax bill that is more than the taxpayer should be paying or a refund that is less than what they would have received if they had filed on time.
The IRS sends a Notice of Deficiency to corporations before filing a substitute tax return. After the taxpayer receives this notice, they will have 90 days to either file their late tax return or dispute the substitute return.
Withheld Refunds
If you have failed to pay your tax returns for any year in the past, it is possible that the IRS will withhold your refund until you file your late returns. Filing late tax returns can also affect your ability to claim tax credits on future returns.
Sacramento Accountants and CPAs Available to Help with Late Corporate Taxes
With the help of a late corporate tax return accountant, you can file late taxes knowing that your return will be accurate and thorough. Inaccuracies on late taxes may lead to additional penalties. A late corporate tax accountant can also help you with your late taxes by advocating for you to the IRS; if you were unable to pay your taxes because of a natural disaster, illness, or other unforeseen circumstance, a late corporate tax accountant can help you relay the details of your situation to the IRS. If you need to request an installment agreement or file for bankruptcy, a corporate accountant can help with that as well.
For assistance with your past-due corporate tax returns, get in touch with one of the experienced corporate tax accountants at Sacramento’s Cook CPA Group. These accountants will use their expertise to help you regain control over your taxes so you can build a healthy financial future.
