How a Tax Prep Company in NY Like Melanin Tax Can Help Small Businesses Avoid Penalties
Small businesses in New York are strongly recommended to file their taxes before the deadline. This can prevent them from incurring penalties from their failure to file or failure to pay. Left unchecked, these taxes can grow up to a fourth of the tax due, which can eat up a business’ profits. Melanin Tax, a tax planning company and bookkeeping firm in NY, recommends that small businesses take steps to account for tax season ahead of time.
The tax prep company advises small businesses to plan ahead and actively track their taxes in order to catch up to their late tax filings.
What Small Business Owners in New York Need to Know About Missed Tax Payments
While there are no penalties for tax refunds, small business owners that fail to file or pay their taxes may receive penalties. No extensions are provided for missed payments, so business owners may get fined up to 25% of their tax due. Melanin Tax, which offers tax preparation services in NY, recommends that business owners should keep in mind of the following when dealing with missed tax payments.
Preparing Financial Documents
By being organized and having their financial documents in check, small business owners may find it easier to prepare late tax filings. These include:
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Transaction history of the previous year – each transaction should include the amount earned, its category type, date, and a description of the transaction.
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Invoices – keeping a detailed account of customer invoices, vendor accounts, and other expenses can help business owners determine what is taxable and what they can deduct from the taxes they need to pay.
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Books – this is to help cross-reference transactions with company records. Ideally, what’s listed on the books should be reconciled with other financial documents to ensure everything has been recorded.
Avoiding Future Late Tax Filings
Business owners can incur two types of penalties. Those who fail to file after the due date without a justifiable reason will incur a 5% penalty for each month filing is late, with a maximum of 25%. Those who fail to pay, on the other hand, can incur up to 25% of the unpaid tax. For small business owners, these penalties can eat up their revenue.
Melanin Tax recommends that business owners take steps to prepare their tax filings ahead of time. Aside from having the documents necessary, this also means having the funds necessary to pay for the federal income taxes. Having a designated savings account can help businesses create a fund that can allow them to pay their taxes on time.
Hiring a Tax Prep Company in NY
Given the tasks and tax knowledge required to handle tax filings, business owners who want to minimize error and time away from their regular operations can opt to hire tax preparation services in NY. Not only does this avoid last-minute scrambling during tax season, but it ensures that all taxes are filed correctly and the risks of audits or penalties are minimized.
Tax preparation companies have the expertise and experience in tax planning for small businesses. Whether it’s preparing taxes during tax season or assisting with the business keeping tabs on their taxes year-round, this service can help small business owners with their operations.
Get in Touch with Melanin Tax for Reliable Tax Planning and Bookkeeping Services in New York
Melanin Tax specializes in tax preparation and bookkeeping services for individuals and small businesses. Through their services, they make sure businesses have their taxes in place, ready for filing and audits, to ensure all tax matters are handled smoothly.
For more information about their services, contact Melanin Tax for a free consultation at +134-794-36772.
Media Contact
Company Name: Melanin Tax Solutions
Contact Person: Lorraine M.
Email: Send Email
Phone: (347) 943 6772
Address:1200 Waters Pl Suite 105
City: The Bronx
State: New York 10461
Country: United States
Website: melanintax.com