National Small Business Week is celebrated during the first week of May every year and takes place from May 1 to 7 this year.
The due date for filing your federal individual income tax return is generally April 15 of each year. However, because of the Emancipation Day holiday in Washington, D.C., for the 2021 tax return, the due date is April 18, 2022.
The aim of this week is to honor the entrepreneurs of our country, who have played their part in bringing new ideas to life and growing our economy,” explains Daniel Ahart, chief tax officer at the tax preparation company Daniel Ahart Tax Service®
Understanding both the opportunities and tax responsibilities that come with starting a business
According to statistical data, the probability of young people choosing to start their own business is 188% higher today than it was in 1953, when the U.S. Small Business Administration was founded to assist and counsel small businesses to flourish in the land of opportunity.
Small business owners have a variety of tax responsibilities, nevertheless. The IRS knows that understanding and meeting tax obligations is vital to the success of all businesses, especially a new one. IRS.gov has the resources and information to help people through the process of starting a new business. Here are some tips by the IRS for new entrepreneurs.
Other responsibilities small business owners have are bookkeeping and online payroll.
What Happens If You File Or Pay Your Taxes Late?
Two penalties may apply. One penalty is for filing late and the other is for paying late. They can add up fast. Interest accrues on top of penalties.
- Late-filing penalty. If taxpayers file their 2021 tax return more than 60 days late, the minimum penalty is usually $210. If the tax owed is less than $210, it’s 100 percent of the unpaid tax. Otherwise, the penalty can be as much as 5 percent of the unpaid tax each month up to a maximum of 25 percent. There’s no penalty for filing late, if the taxpayers is due a refund.
- Late-payment penalty. You’ll likely end up owing a late payment penalty of 0.5% per month, or fraction thereof, until the tax is paid. The maximum late payment penalty is 25% of the amount due. You’ll also likely owe interest on whatever amount you didn’t pay by the filing deadline.
Get The Help You Need When You Are Ready To File
Daniel Ahart Tax Service® prepares all tax returns, helps solve tax problems, and prepares back taxes. 22 Area Locations in Georgia.
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