Although taxes are no fun to begin with, they can become even worse if you are not handling them correctly. Not paying your taxes, not keeping record of what you are paying, and even not paying enough taxes can all get you into trouble with the IRS. This can lead to a potential halt to your business and a shutdown of your company. Because of this, you’ll want to be sure that you are dealing with every aspect of your company’s taxes properly.
While getting into trouble with the IRS is a more extreme consequence to improper tax handling, there are also many less extreme, but definitely still detrimental, consequences.
If you fail to deduct enough money out of your company’s quarterly revenue, you may be responsible for paying a large sum of money at the end of the taxable year. Rather than receiving money back on your tax return, you will be liable to pay however much you failed to tax yourself quarterly. This can definitely catch you off guard and get you into financial trouble, so don’t run into this problem.
As the year approaches its end, it’s crucial that you take a look at how much you have put in for quarterlies this year.