04/ 14/ 2006
Despite the filing deadline being extended two days this year, tax day is still a cause of stress for many small-business owners scrambling to gather last-minute records or receipts.
NFIB knows that on any given day small-business owners have plenty of things to deal with. To help get organized for the April 17 deadline, here are some last-minute tips to keep in mind:
If preparing your taxes yourself, use a computer program to cut down on time, frustration and errors. Software programs like QuickBooks or online Web sites like TurboTax.com help you calculate your income, expenses and credits, and keep your information on file for future reference. E-filed return are processed faster than mailed ones, and in most cases you receive your refund quicker, too.
Make sure you have all of the correct forms—and that they are filled out correctly. IRS.gov offers small-business owners a special section on filing and paying taxes with helpful tips and forms.
Double-check your return before you submit it. Even if you're using a computer program or Web-based software to file, always double-check your return before sending it in. Some common errors to avoid include:
- Entering an incorrect tax amount from tax tables
- Listing incorrect or incomplete Social Security numbers for the filer and/or dependents
- Misspelling names or listing name changes not provided to the Social Security Administration
- Using an incorrect form
- Checking the wrong filing status
Request an extension. If you're afraid you won't make the deadline and you file your taxes as an individual, you can request a six-month extension using Form 4868, the Application for Automatic Extension of Time to File a U.S. Individual Income Tax Return. An extension only grants extra time for filing the return, not for paying any taxes that might be due.
The request must be made by the due date of the return, which is April 17 for all but seven states. Taxfilers in Washington, D.C., Maine, Maryland, Massachusetts, New Hampshire, New York and Vermont have until April 18 because of the Patriot’s Day holiday.
So what happens if you've completed your return but can't pay the money you owe? The IRS says don't file for an extension. Instead, file your return on time and pay what you are able to. The IRS will send you a bill for the balance, and will “charge interest and penalties only on the unpaid balance,” according to IRS.gov.
