Small Business? DON'T Make These Tax Filing Mistakes
Top 5 Sales Tax Filing Mishaps
Are you a small business owner dealing with taxes to do this season? Here are a list of things to avoid when filing.
1. Not paying attention to different rules for different states
When you cross over borders, sometimes the rules may and probably will change. Each state has their own way of doing sales tax compliance's. These rules can vary in due dates, formats, penalties and more. Make sure if you are covering a variety of states that you have all your ducks in a row before you begin!
2. Not filing for anything because you didn't have any tax
Just because you didn't collect any taxes throughout a certain period, doesn't mean you don't have to file. Most states make you do filing for periods that you didn't collect anything at all. If not completed, you may be penalized! Be on the look out and don't blow off filing just because you had no data for that period.
3. Recording wrong numbers
When given a lot of data, it is often easy to make simple mistakes when inputting. Again, check the guidelines for each state, for some may want you to break down collections, which can result in error if not done right. Make sure you take it slow, double check your math, and maybe have a peer review it before submitting anything.
4. Missing Due Dates
This is one of the biggest red flags when it comes to filing your sales tax. When registered with a state, they should give you a guide to when things are due. This may be monthly, quarterly, semi-annually, etc. Even though the due dates will mostly likely be consistant within every period, they may hop around due to holidays and weekends. Therefore, keeping a log of the exact dates due is crucial! Give yourself enough time to submit things a few days before the due date to ensure it gets in on time.
As you may know, if you fail to file on time, you will be issued a penalty from your state. Some of these fines even include interest, so if not adressed on time can become a real burden. Make sure to use some of the tips above and stay organized and alert to changing deadlines to avoid these fines!
For more information on this subject feel free to visit Intuit.com at visit http://quickbooks.intuit.com/blog/top-5-sales-tax-filing-mistakes-small-businesses-make/
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