Tax season is met with many queries surrounding dates and formalities. There are many specifics for different organization types that differ from one another. Tax season can look very different depending on if you operate as a sole proprietor or as a partnership, or corporation.
Making sure the timeline is followed and members of the team are following it accordingly is important, but it can be confusing and hard to follow. Graphics and calendars can be the solution to this problem. Tax Timelines can be followed effortlessly through tools such as graphics and calendars that help a business stay on task throughout the year.
Following a Timeline for Tax Filing
Following a timeline through the year can ensure that there are no missed steps or important dates. It is important to know what differences your business may need to file, for example; by February 1st it is important to have put in a request for an extension in case form 5472 was missed as it comes with a $25,000 penalty fee. Keeping track of these dates and keeping up with any tasks that are attached to them can help ensure a smooth tax season.
Understanding how to file taxes is an important task for those who take part in a business. Understanding when a fiscal year ends, and how that affects federal tax deadlines can help a business stay on track. If a business opts out of using the December 31st date for their year end date then they would have to calculate their date. This date would then be 3.5 months after the end of their fiscal year.
There are exceptions to this though, many companies that have activities in countries such as the UK and Australia may match their year end date to those countries. Another exception to keep in mind is that tech companies January 31st as their end of year date to keep on track with Salesforce.
These dates are important when filing with the IRS and having a general knowledge or tool to utilize can be very beneficial. When mistakes are made penalties may occur. Some penalties can also be accompanied with criminal charges. Businesses can utilize graphics and calendars to make sure they have a better understanding of what is expected of them.