Tips for Tax Compliance for Seattle Business Owners

As taxpayers in Seattle, business owners need to maintain compliant status if they do not want to get in trouble with the Internal Revenue Service. Failing to file a tax return can become stressful when the penalties start piling. Once a business taxpayer’s account makes its way to the Collection Division Inventory, the Internal Revenue Service will begin sending notices. Those unfiled delinquent tax returns could result in your business assets being seized or a levy being placed on your source of income. Before problems with the IRS become overwhelming, consider these tips:

1. File your current year’s tax return on or before the due date.
2. Ensure that you have kept track of all of your expenses, such as client meals and mileage.
3. Avoid discrepancies and anomalies by maintaining clean books.
4. There are business taxes that, by law, can be spread out. If the costs are expected to run at least three years, you can avail of these tax terms.
5. Remember, even if you had no business activity for the year, you must report your gross revenue.
6. An annual taxable gross revenue of $100,000
7. Know what items and expenditures can be deducted, keep receipts and documents if you need to show proof.
8. There are different rates for different businesses. If you run several, make sure you are computing each business’s taxes at the corresponding rate.
9. Business license taxes also have different rates.
10. Tax extensions can be requested if the taxpayer is prepared to file yet.
11. All past due tax returns should be filed even if you are unable to pay in full.
12. Business owners with problems with their payments should discuss a settlement plan with the IRS at the soonest time possible.
13. A penalty abatement can be requested. For first-time penalty abatements, an administrative waiver can be requested. Another request is a reasonable cause based on the taxpayers’ prudence to meet tax obligations due to certain situations that will need to be accepted by the IRS.
14. Consider discussing payment arrangements with the IRS to minimize the interest and penalties.
15. Hire an accountant or a bookkeeper. You might actually save yourself more money and lessen your stress by having a professional manage, organize and even recommend solutions regarding your taxes.

The IRS will work with business taxpayers who are looking to become compliant. If you are unsure about your obligations, especially if you have just recently started your business in Seattle, being tax compliant can become complicated. Make sure you are well informed about the tax laws in the area so that you can boost your business’s profitability and growth.

If you ever find your business facing IRS and tax troubles, call 206-970-4-IRS to speak to one of our tax resolution experts. There is no cost or obligation to get in touch with us and your initial phone consultation is absolutely free.