Monday, April 14, 2008
It’s that time – tax time!
Monday April 14th is kind of the last minute to be thinking of options for paying taxes. I just read an article that may offer some comfort, or at least some options for those who owe more than they can afford. http://finance.yahoo.com/taxes/article/104810/Bill-Busters
Overwhelming tax debt got you worried? First file, then consider options
"The IRS isn't going to go away. If you owe them, they'll hound you until after you're dead," said Cindy Hockenberry, a tax information analyst with the National Association of Tax Professionals, in Appleton, Wis. (And she's not joking: If the executor of your estate doesn't pay your tax bill and distributes your assets to your beneficiaries, the IRS will go after the executor.)
If you don't file a return, you'll pay 5% a month, up to 25% of your total bill, until you do. But the failure-to-pay penalty is much less, just one-half of 1% per month, up to 25% of the total due.
I am fortunate to have a great tax guy at Professional Tax Service in Bowling Green. Visit their website (http://www.1040.com/ProTax) and ask for Mike Buser. Tell him David Francis sent you. Mike offers more than just comfort; he asks many questions and offers great advice not only for this tax year, but in the year to come. (No, this is not an advertisement for Professional Tax Service nor am I compensated in any way for mentioning it.)
Sure, I have accounting software and keep my records, receipts and notes. But having a counselor who’s focus and expertise is income tax provides more than spreadsheets and printable forms; it provides a warm fuzzy and knowledge that I have paid the proper taxes, but not too much.
Mike also offers strategic advice for the coming year. His advice for me was, “You may want to come in around September and we will look at the any possible tax advantages of incorporating your companies.”
But back to the point! Even if you feel you owe more tax than you can afford to pay, read the linked article and file accordingly! In this case, it is not a time you want to ask forgiveness instead of permission.
Labels: Accounting, bookkeeping, small business
