Frequently Asked Questions About Filing Your Taxes
If you are a business owner or even just an employed individual, filing your taxes is part and parcel of life. This said you might have several questions and doubts on your mind regarding tax preparation and filing. These may pertain to the entire process, important dates, and new regulations. To clear your confusion and arm you with the information you need to make the right decisions, Corey & Associates has answered some of the most frequently asked questions about filing your taxes. These answers are based on our personal experience so that you have first-hand information to ensure you stay compliant with the IRS and your business is always above board.
1. What is an LLC extension due date?
An LLC extension due date refers to the date when an extension for filing the tax return of a limited liability company (LLC) is due. Owners of LLCs are allowed to file extensions if they are unable to get their taxes done in time.
2. What is a corporate extension?
Corporations in good standing are allowed an automatic seven-month paperless extension of time to file their returns. April 15th is the deadline to file for a corporate tax return extension, and you would use forms 1120 and 7004 to apply.
3. What are personal tax return extensions?
While the IRS does impose deadlines for filing information returns, extensions are frequently granted. These extensions can usually be for thirty days or six months, depending on the return. But, even if you obtain an extension to file, you must still pay your income tax in full by the tax deadline.
4. When is the due date to file LLC returns?
Generally, the date is April 15th. However, this year, sole proprietors and single-owner LLCs, who typically have to file their tax return by April 15th, will have until May 17th, 2021, to file their 2020 taxes.
5. When is the due date to file corporate tax returns?
In the state of Florida, corporate tax returns are due by the first day of the fifth month after the end of the tax year. This equates to May 1st for calendar year filers.
6. For taxation purposes, which is better to open an LLC or corporation?
LLCs are generally more flexible than corporations when it comes to taxation. This is because an LLC is a relatively new type of business entity, and it doesn't have its own tax classification with the IRS.
7. How do I keep track of all the receipts my business generates?
Modern ways to keep track of essential receipts include digitizing all your receipts with a receipt scanner and using software to categorize and keep your expenses all in one place. You could also connect your bank account to your accounting software to import transactions automatically and have a dedicated business bank account and card and make notes on receipts so you know their purpose.
8. If married, should I file tax returns separately? Why?
Though most married couples file joint tax returns, filing separately may be better in case of a separation or pending divorce. Filing separately also shields one spouse from tax liability issues for questionable transactions.
If you have any more questions about tax, accounting, bookkeeping, or business consulting, contact the experts at Corey & Associates. We aim to provide our clients with the best accounting, tax, and consulting services possible by expanding their knowledge of taxes and the accounting function in their daily business. Moreover, we build cordial connections with them, so they feel comfortable to clear their doubts with us and follow our instructions to spend less and save more. Our services are available to clients across the country, including Hialeah, Miami Lakes, Pembroke Pines, Doral, Palm Springs North, Opa-Locka, Miramar, Hialeah Gardens, Miami Gardens, Miami Springs, Miami-Dade County, and the surrounding areas.
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