A recent article, 4 Quarterly Tax Reporting Mistakes You Don’t Want to Make by Choncé Maddox says the entrepreneurs may have to pay taxes four times a year, but most of them are not too excited about filing taxes. However, self-employment taxes can be huge and to keep your finances organized throughout the year can be difficult.
Paying taxes is inevitable, so avoiding the 4 quarterly tax filing blunders will help you run the process more smoothly.
1. Not Paying Quarterly Estimates
The IRS imputes a penalty if you don’t pay the quarterly estimated taxes, so the huge mistake that you can do as an entrepreneur is to wait until April to pay your taxes.
As a business owner in a shared office space, you have to be wise about your money, so an accountant can remind you of the deadline of the tax payment and give you the estimate of how much you have to pay each quarter.
2. Undervaluing Your Quarterly Payments
The IRS imposes an interest penalty if you underpay your estimated taxes, so it is very crucial that you have a reliable accounting software to properly track your income and expenses and have a trusted accountant to give you tax advice.
3. Insufficient Tax Savings
No tax savings would place you in a tough situation when you cannot pay your quarterly estimated tax. Make sure you have sufficient funds allocated for quarterly taxes to avoid late payment penalty and underpayment interest.
4. Not Keeping Payment Receipts
The IRS may make mistakes, and you might be told that you are missing payments. Paying taxes and not having those payments credited is a worse scenario that you don’t want to experience. So ensure that your tax payment receipts are intact.
Paying taxes is your responsibility and avoiding these four tax payment blunders will prevent your business from unnecessary costs. Once you pay your taxes diligently and in good term with the IRS, you can have tax refunds/savings that you can use for relocating your office in the business center of Orlando. YourOffice Orlando has come alongside hundreds of business looking for everything from staffed flexible offices Orlando to agile office space Orlando. We know your business is unique, and your office space shouldn’t be any different. Let us match the perfect space or service to fit your business needs.