Didn't File By September 15?

  • By proadAccountId-379994
  • 19 Sep, 2016

A few days ago, we passed the first of tax extensions that were due -  for Partnerships and Corporations. Here's what to do if you missed the deadline.

Okay, a few days ago, we passed the first of tax extensions that were due -  for Partnerships and Corporations, so I wanted to briefly explain the extensions and what happens if you miss filing business returns by the (extended) due date. 


Despite the extra time, each year, I see people everywhere who still aren’t ready to file.  And to be fair, we end up filing those extensions right before summer vacations or school years ending and time just gets away from us.


Everything has an expiration date and for  Partnerships and Corporations, that was September 15.  Since you may be already starting to sweat a little, I won’t assume that you know what those are, so to start off, I'll provide a short synopsis of each.

Prefer to Listen? Click Below


PARTNERSHIPS AND CORPORATIONS

If you're a Partnership you've told the IRS that two or more of you are going into business together and reporting business activities on one form, Form 1065.  That return is due April 15th, but filing an extension gave you an additional five months to file.


Corporations file form 1120 which is due on March 15th, but filing an extension provides an additional six months to file.  So September 15th ends up being the due date for both types if they’ve filed extensions - unless there is a special calendar year that doesn't end in December and that's a whole other subject and you can learn about that at the IRS.gov website


There’s also a special type of Corporation called an S-Corp (short for “Corporation”) that should be mentioned here. Where a regular Corporation will pay tax on reported income, S-Corps pay no tax, but instead pass that taxable income on to the shareholders.  Corporations don’t have owners, but instead, shareholders, who end up claiming that income on their personal returns.  


In all 3 cases, you’ll report business activities in a separate return.  The differences are whether or not those entities pay tax.


I've learned to give this introduction because so many of my business clients, didn’t understand the basic difference when we met, and many business owners have no idea and are filing the wrong forms which creates a whole other set of expensive headaches.  If you're still not sure which of those entities you are, I would recommend placing a call to IRS to find out before filing anything.



FINALLY ON TO THE EXTENSIONS!


So, filings were due by midnight, September 15th.  If you missed that deadline, just be aware that there may be penalties accruing as you read this - penalties for being late.  Please note:  I’m not referring to the interest on the tax, the penalties for paying the tax late, etc. All that’s in ADDITION to what I’m about to say next.


Remember the Corporation that pays tax on taxable income?  When it files after the deadline, it will be assessed a penalty of 5% for each month the return was late, up to 5 months, so 25% total.  If your corporation doesn’t owe tax, there’s no late filing penalty.


It gets a bit more complicated for the entities that don’t pay income tax, the Partnerships and S Corps.  If these types file late, IRS assesses $195 penalty for every partner of the partnership, or every shareholder of the S corporation, for up to 12 months.  That can get pretty steep when you’re looking at penalties just for filing late - even when you don’t owe tax!


SO WHAT'S THE BOTTOM LINE?


If you fall anywhere in the above discussion and haven’t filed anything, I would say 

1) focus, 

2) start pulling together your numbers but now, 

3) give yourself an additional 30 days - a new deadline of October 15.  


I’m never for beating ourselves up too much when we miss deadlines, but I think you’ll agree with me that these penalties are really a high price to pay for procrastination.  Let’s eliminate that expense!


NEED TO TALK ABOUT IT?


If you’re still stuck and feel overwhelmed by it all, I’m going to close this out by throwing you a “lifeline,” a link to schedule a quick phone with me to talk about next steps. There may even be a few shortcuts to get this off your plate:  

www.timetrade.com/book/2dxwj


Hope this helped to ease the stress a little bit about filing late and/or motivates you to get things going.  

Check the blog often for more tips and strategies on smart ways to deal with your taxes.

Make it a great day, especially for your money and we will “see” you soon!


By proadAccountId-379994 19 Sep, 2016

Okay, a few days ago, we passed the first of tax extensions that were due -  for Partnerships and Corporations, so I wanted to briefly explain the extensions and what happens if you miss filing business returns by the (extended) due date. 


Despite the extra time, each year, I see people everywhere who still aren’t ready to file.  And to be fair, we end up filing those extensions right before summer vacations or school years ending and time just gets away from us.


Everything has an expiration date and for  Partnerships and Corporations, that was September 15.  Since you may be already starting to sweat a little, I won’t assume that you know what those are, so to start off, I'll provide a short synopsis of each.

By proadAccountId-379994 25 Aug, 2016

We’re way into August and okay just when you think you're done with taxes, you get a notice!

Well if this has happened to you, just know that you're not the first and you won't be the last. My best way to describe tax notices is the IRS asking questions about something you’ve said, or maybe forgotten to say. (Yes, they are actually listening).


1. MAKE SURE IT’S YOUR NOTICE AND IDENTIFY WHAT YEAR 

First thing you want to do is make sure it to your notice. This may seem a bit obvious, but in this age of paper mail being delivered to wrong addresses you'd be surprised. Notice the tax year that will tell you what year they're questioning. That helps you focus your energy on gathering the right folder to find any discrepancies. Unfortunately, it can take a few years for IRS to catch up with you with questions that you may have to provide documentation for, so be sure and keep your records at least 3 years, if not a few more just to be safe.

2. IDENTIFY THE AMOUNT YOU’RE BEING ASSESSED

After you've done the preliminaries now it's time to get into the meat of the notice, starting with the first section, which is pretty much a summary, that includes any actual tax owed, any payments toward that tax, next interest and penalties, if any, the total amount due and when it is due.
If it’s the first notice, there’s a good chance that IRS is just “proposing” additional tax. If so, it will will actually say that and the amount due in bold letters, and then include the summary tax, interest, new amount and due date.

3. FIND OUT WHAT IRS WANTS YOU TO DO NEXT AND BY WHAT DATE

Next section actually appears before they’ve provided the details. It’s still helpful to know this though in case you’re tempted to put the notice down and forget about it

There's typically a phone number to call, which will usually get your call answered more quickly. Always have your notice available because they will ask you this information to provide answers.

You may also see what to do if you agree with the change, what to do if you disagree with the change, and then what IRS will do if they don't hear from you. Scary language indeed!

By Mildred Dillon 19 Aug, 2016

Our entire lives revolve around credit and keeping the credit score high enough so that we can buy things such as houses, cars, insurance, cell phones, and rent cars and places to live. Even utilities can use credit reports to determine the interest rate you’ll pay and in some cases whether you can even get the item you want.

If you have no credit, you will still get to buy these things, but it might cost you an added one or two percentage points in interest or require a larger down payment. Even with the inconvenience, though, you’re likely to experience many more benefits of living without credit than drawbacks.

So can you really live without credit?  

Whether you're forced to do it because you're not getting approved or the thought just crossed your mind, here are some reasons to literally rejoice if you've been shut out of the system and unable to get all the credit you want:


* No One Can Tell You "No" – When you apply for credit they can say no for many reasons, some that make sense and some that don’t. When you use your own money you say "yes" to yourself with a feeling of freedom rather than defeat.

* You’ll Spend Less – The truth is, people tend to spend more money when it’s on credit than if they know they’re spending cash. When you spend cash, the money is harder to let go of because you know how hard you worked to get that money.

* You’ll Have Fewer Bills – If you don’t use credit you’ll have fewer bills to pay each month, which can lessen the stress in your life exponentially. Being able to live with less money each month is a very freeing experience.

* You Will Save More Money – When you have fewer bills you can save more money. You are the one who will earn interest instead of the bank. You can put the money away and then ultimately end up using less credit due to saving more money.

* You're Better Prepared for the Futur e – Not using credit will make you a lot better prepared for the future due to the savings you will stockpile. Plus, if you have fewer monthly bills, you can live off less if you should get laid off.

* It Unleashes More Creativity – When you have to think outside the box to live less expensively, you will become more creative in your everyday life.

* It Keeps Your Priorities Straight – When you don’t use credit you are able to realize what is important. Having more things isn’t as important as the health and security of your family.

* You’ll Avoid Interest Charges – credit balances create extra expense called "interest" and depending on your credit score, your interest rate can be really high: usually in the double digits if you have bad credit. Imagine if you could earn this much money in your savings instead of paying that much for your movie tickets that you charged on credit. (We'll discuss debt balances and interest in a future post).

So, I hope you see that not only can you live without credit, you can live better without credit. The credit industry doesn’t want you to know that you can live without credit. They want you to feel as if you have to use credit for everything or you won’t be able to buy a house or get a job. But, the truth is there are always ways around those issues. They might initially cost a few dollars more but the savings from not using credit more than makes up for it.

Make sure you check back  for our next post soon. I and my team will be talking about starting off on the right track building credit and avoiding the pitfalls of debt - and those interest charges!

If you'd like a free download I wrote on the subject, visit the FREE TIPS page.  See you soon!

By Mildred Dillon 17 Aug, 2016

Blog posts are a great way to get recognized within your community and share your voice. Here are the top 10 reasons you should love writing blog posts.

Anyone can make one:
For better or worse, anyone can write a blog post about anything they want. Everyone has a voice and the best voices will rise to the top.

The writer can show their personality:
In blog posts, the writer has more leeway to add in their voice and personality than other types of writing.

Blogs are a great form of mass communication:
You can help people, learn new things, entertain your audience—the possibilities are endless and amazing. Blogging opens up all of these to a very wide audience.

You can make money:

Get the right blog going and you can make a lot of money through advertising and sponsored posts.

It allows people to craft better thoughts:
Instead of reading haphazard, uneducated Facebook statuses, it’s much better to see people’s thought process in a well-written blog post.

You can establish a community:
Blogging allows you to connect with other individuals who share the same interests. Sharing ideas and opinions within your community helps establish yourself as a thought leader.

Good for SEO:
Keeping content on your site fresh and relevant, you can use your blog to boost the search engine ranking (SEO) of your site and your business.

It brings people back to your site:

If your blog is strong enough and updated regularly, people will come back looking for more and bring traffic back to your site as well.

It’s free:
It costs you a grand total of zero dollars to post to the blog, so if you have something to say, there’s nothing to stop you.

You can establish yourself as a thought leader:

A blog is a great place for your original thoughts, and it can be a wonderful way to show off your individuality. If people like your ideas, you can become a thought leader in your industry!

What else do you love about blogs? Let me know!
By Mildred Dillon 29 Jun, 2016

It’s official, I have a blog and know how to use it.   YAAY :)

You have to understand how major this really is.  For about 4 years now I've seriously wanted an easy way to share information with web visitors, but also my clients, and newsletter and social media audiences at the same time.  It's finally happened!  It took getting yet another website (this is #9 I think...smh!), lots of study on my part, and learning new skills, and plenty of patience, but it especially took formulating a plan, and working my plan to get it done.

And you know what? Based on the first few posts it's really not that hard at all!

But isn't that how most things in life are that are new and unfamiliar?  

Have you ever needed to do something to reach a new level, but it all seems too huge, too far away, too hard?
Well welcome to the story of my business life!

Some people say I make achieving goals look easy, but it's really just habits I've formed over the years of following the same techniques that work to achieve goals.

First thing is to take one step.  
Then, I take the next step.
Then, take the step after that, and I think you get the idea.  No, it's not rocket science.

Anything that seems huge can be broken down into smaller chunks, smaller plans, smaller steps.

So, those are the types of things I'll be sharing here:

  • Goal Setting Techniques (especially around money success) -  After 15+ years in business and counting, I have become a master at scheduling and prioritizing tasks and getting things done.  This blog is where I'll post a lot of that information

  •  General Money Management -  It's not how much you make, it's how much you keep that makes the difference.  So I'll be sharing with you how to keep more of what you make.

  • Business & Financial Best Practices -  Own a business but feel somewhat lost or didn't get the start you'd hoped for? I'll be including my own personal experiences and those of clients, and my network partners will be contributing content here as well to help bring you up to speed.

  • Tax Matters - Maybe you're behind on filings, trying your taxes yourself, or have questions about a notice you received.  Check here periodically to see if you can find answers.
So that's it.  I'll end this first post here, but be sure and keep in touch, and even post replies and comments.  I'd love to connect :)
















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