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What Should Every Company Know About Tax Penalties?

Before we tackle about penalties you need to avoid, we should first know what is tax.

What is Tax?

Tax is an obligatory payment to a country to have a revolving fund in which they can use for nation rehabilitations, infrastructure, and other things that are needed for improving the nation. It is imposed by the government on employed individual’s income and on corporation’s profits from the services or goods they are engaged with. Everyone is responsible to pay their taxes, be it businessmen, companies, or individual taxpayer.

Let’s now focus on major tax penalties imposed by the Internal Revenue Service (IRS). You need to avoid penalties in order to lessen the grieving penalties given to the company. Here are few of them:

  1. Failure to file penalty
    It’s a penalty imposed on the individual or the business owner if they file their tax more than 60 days after the due date or the extended due date.
  2. Underpayment penalty
    This penalty goes to those who do not declare their proper income tax. Plus, they pay less than the total estimated tax issued to them.

How to avoid these penalties?

It is always best to pay for your obligations on time rather than not paying attention to it. However, there are instances when you get too focused on other obligations that you tend to forget other responsibilities such as paying your tax. It only adds to more expenses of the company.

There are some ways on how you can reconcile these penalties. The best way is to hire a tax filing expert. They assure you that they can file your tax on time and pay on time.

But before you hire one, make sure they are reliable. They should be skilled and have years of experience, so you’ll know they are adept in doing so. Plus, they should know how to find solutions to every problem involving your tax. You don’t want to be strangled in facing tax penalties, even if you’re hiring an expert.

Handling your tax can be complicated. But if you ask advice from professionals, you will avoid facing these penalties.

If you’re looking for the best one to handle your tax, call Dollars & Cents Tax and Accounting Services, LLC at 888-365-2368. We help you with anything you wish to know about your taxes and other Tax Services. We are licensed and insured!

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