If you decide to run your own business, it’s absolutely essential that you are aware that you have to organise and pay your own taxes. As employees, many of us benefit from our employer taking care from this on our behalf and automatically deducting tax from our pay. But when you run your own business, responsibility will definitely fall on your shoulders! If your business is based in the USA, you’re going to find yourself dealing with the IRS for tax purposes. Here’s everything you need to know on the subject!
What Is the IRS?
IRS stands for “Internal Revenue Service”. It was established in 1862 by President Lincoln, but nowadays, it operates under the authority of the United States Department of the Treasury. It is essentially an authorized U.S. Government agency that was set up to collect taxes from anyone who is making a profit. The IRS will enforce whatever tax laws are in place at the given time.
Bringing in Professional Help
Of course, seeing as the IRS can bring in legal action if you do not pay your taxes correctly, most people feel daunted when engaging with them – especially if they are running a business that is generating larger figures than the standard employee will earn each year. So, you may want to bring in professional help when dealing with the IRS and filing your taxes. Most people will opt to use a registered and experienced accountant. Look for a recommended accountant with good reviews. This will give you faith and trust in their services. You can also use services like https://www.tri-merit.com/services/research-and-development-tax-credits to get to grips with the ins and outs of your tax credits.
Important Tax Dates
It’s important to get to grips with your tax before specific tax dates that stay steady in the calendar. There are deadlines attached to different forms and you will need to meet these in order to avoid getting fines.
- July 15th 2020 – this is when you need to submit your IRS income tax return and pay any outstanding tax. It is also the deadline for the majority of state returns. Usually, this deadline would fall earlier in the year, but it has been extended due to the coronavirus and Covid-19 pandemic.
Of course, tax is complex and relatively complicated. It will be one of the more technical and mathematical aspects of running your business. But the good news is that there is professional help out there that will help you to get by. A good quality accountant will know exactly how much you need to pay and can help to ensure that you file and pay everything you need to on time. Don’t leave things until the deadline. This is one area of your business that you need to be organised. Hopefully, some of the above information will help you along the way!