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What to Do If You Miss the Tax Deadline
April 15th has come and gone, and you missed the tax deadline for your auto repair shop.
It can be so easy to get caught up in the day-to-day grind of managing your customers, your shop, and your staff that the tax filing deadline just slips away.
If you find yourself skipping the date, don’t panic. There are steps you can take to minimize late fees and potential consequences from the IRS.
So, relax your shoulders, take a deep breath, and dive into this blog post full of tips to help you with your next steps.
Step #1: File a Tax Extension
Before you do anything else, head to the IRS website and file a tax extension. Click here to get the form.
This buys you time to gather the necessary documents and prepare your return.
Important note: An extension only gives you more time to file, not to pay. If you owe taxes, you’ll still need to make estimated payments by the original deadline to avoid penalties and interest.
Step #2: Determine Why You Missed the Deadline
Once you’ve filed a tax extension, take some time to figure out why you missed the deadline.
Were your records disorganized?
Did you stumble across unforeseen circumstances?
Or was it simply an oversight?Figuring out why you missed the deadline – and taking action to fix it – will help prevent it from happening again. If you need help simplifying the process for next year, here are some tips!
Step #3: Collect Your Records
Now that you have more time from your extension, start gathering all the necessary documents for your tax return.
This includes tax forms such as W-2’s, 1099s, and other forms. You’ll also want to gather and organize receipts, mileage records, social security documents, bank statements, income statements, expense records, payroll records, tax deduction records, profit and loss statements, balance sheets, financial statements, and any other relevant or requested paperwork.
Step #4: Calculate Your Taxes
Once you have all your documents in order, calculate your taxes as accurately as possible. If you’re not working with a tax professional, your best plan of attack is to invest in tax filing software such as Turbo Tax. QuickBooks Online also features a tax preparation service.
Once you determine if you owe taxes, make sure to make estimated payments on time to avoid penalties and interest.
Step #5: File Your Return
Once you’ve calculated your taxes, file your return as soon as possible. The sooner you file, the sooner you can put the stress of the missed tax deadline behind you. Lesson learned!
Step # 6: Pay Any Taxes You Owe
If you owe taxes, make sure to pay them as soon as possible. The longer you wait, the more interest and penalties you’ll accrue.
Disclaimer:
This blog post is for informational purposes only and should not be construed as tax advice. Tax laws are subject to change, and business circumstances vary. It’s important to get direct advice from tax professionals who know the specifics of your situation.
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