5 Reasons Why You Should File Your Corporation Tax Returns On Time

Filing your corporation tax returns on time is more important than you may realize. Even if you’ve got an accountant, it never hurts to know what they’re doing and how it affects your business, so this quick list of reasons why you should file your corporation tax returns on time will help keep you informed of the most pressing issues and the importance of getting them right the first time. Make sure you hire an accountant in welling who knows what they’re doing when it comes to corporation tax returns!

1) The Consequences of Late Filing

The consequences of filing late can include penalties, increased interest rates, and a loss of operating time. A corporation’s failure to timely file tax returns may also result in the assessment of federal income tax deficiencies. Late filing is also a red flag to credit rating agencies that may lower the corporation’s credit worthiness. And finally, late filing can adversely affect the corporation’s ability to obtain financing. What are some reasons why you should file your corporation’s taxes on time? Here are five:

1. Late filers might lose out on many benefits offered by the government such as small business grants, cash-back incentives, tax credits, or deductions.
2. They could be penalized for paying their taxes late (late payment penalty).
3. They could incur greater finance charges for using their money longer than they need it (interest charge).
4. If a corporation doesn’t file its taxes on time, then it might not be able to get any loans or new funding from banks.
5. It could cause their business credit score to drop significantly.

2) The Benefits of Filing on Time

You might be wondering, What are the benefits of filing on time? Here are five:

1. You will not incur any late-filing penalties, which can be up to 25% of your tax liability.
2. Filing on time can save you from any interest charges and penalties that would otherwise accrue by waiting until the last minute to file.
3. It enables you to avoid any business interruption, like a missed deadline for payroll or not being able to meet customer demands.
4. Late filing means a delay in getting your refund, which may cause cash flow problems for your business — especially if you have loans or other expenses coming due soon after you file taxes!
5. If you owe money for past years but failed to file on time, this is one way to get it back quickly. By filing now,

It’s true that sometimes life gets hectic and it’s hard to remember when corporate tax returns are due. But don’t let your procrastination lead you into trouble! Filing now could help prevent expensive consequences down the line. Remember: there is no penalty for filing early! If you need help filing or want more information about what taxes apply to corporations in general, contact us today.

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