Manage your Income Taxes on time

March 16, 2023 News

Manage your Income Taxes on time to guarantee the proper functioning of your trucking company. Here we tell you the primary data that you should keep in mind. 

What are Income Taxes?

Income Taxes is a type of tax that the federal government of the United States decrees on the income generated by companies and individuals within its jurisdiction. According to the law, taxpayers must file a tax return each year to determine their tax obligations.

Who should file a tax Return?

Income Taxes apply to corporations, partnerships, businesses, and self-employed workers. This tax is levied on all forms of income: wages, commissions, investments, and business profits.

Having the Income Taxes up to date is beneficial because you avoid penalties. Also, some processes have required this document to obtain other types of services such as health insurance Obamacare.

Do all states file Income Taxes?

It is statutory to file Income Taxes in all states. However, the fact of presenting them does not mean that you have to make any payment. It is necessary to differentiate between filing and paying Income Taxes. Although it is a mandatory tax required by the federal government, only some people or companies that file it are required to pay it. The payment for presenting the Income Taxes may vary according to the particularities of each state.

What happens if you don’t pay income taxes?

Failure to pay taxes before the due date may result in the accrual of interest and collection of penalties on the amount owed. Extreme cases in which tax evasion is proven can lead to up to five years in prison.

If you know in advance that you will not be able to pay these taxes, the best thing you can do is request an extension before the deadline. You do this by sending form 4868. Another viable option if you still need to get the total value is to demand payment in installments.

If you file your declaration 60 days after the due date, the minimum fine you must pay will be $435, or the total of your tax debt; in this case, the lower value applies.

What percentage of income must be paid?

The amount will depend on your earnings, although in theory, the higher your earnings, the higher the percentage of taxes to be paid. To calculate the Income taxes, you must add all the sources of taxable income obtained in a fiscal year.

On the other hand, it is recommended that you have a plan for each quarter, not only for this one but also for additional taxes, so you will keep an orderly record and be clear about what things are ready and what you have pending. By planning this way, you will always be able to keep up to date with your paperwork and that of your company, avoiding possible sanctions caused by delays or failures in the processes.

In summary,

You must know the details of the reports and taxes you must present annually, the expiration dates of each quarter, and the documentation required to carry out each process. To avoid errors in filling out forms or reprocessing caused by mismanagement of the business, it is ideal that you have the advice of expert tax professionals, who will ensure everything is in order and on time. Also, remember that you can present the Income Taxes with your company’s taxes as long as it complies with the necessary particularities. For more information, do not hesitate to contact us at: info@personaltruckservices.com