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Tips for filing your small business taxes

2021-02-04T13:26:49.342Z


If you are a small business owner, the accountant José León tells you how you should prepare to file your 2020 tax return and shares some tips to do it easily.


The deadline for filing your small business taxes is approaching, but you still have time to take some steps into account to ensure you do it correctly.

That is why Un Nuevo Día spoke with public accountant

José León

to answer questions about taxes and small businesses.

The first time a person files taxes and, above all, having a company is a very sensitive issue, but with these expert tips, you will be able to do it successfully.

"The most important thing is that you choose a person who gives you confidence to do your taxes. Second, collect your reports: income, expenses, payments to workers. Third, make a list of questions for the accountant who is going to ask you your statement will help you solve those unknowns ", highlights León.

And he added: "If you end up owing money to the IRS you will have payment alternatives and that you can consult with the IRS and with your accountant. Most importantly, do it as soon as possible so that you avoid any delay in your return."

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León also recommends beware of fraud since, during the coronavirus crisis, identity theft has increased.

"Be very careful of fraud. The IRS will never contact them by phone or by

e-mail

. They will always contact them by written letter," he warns.

Another effect caused by the pandemic is that many companies were forced to close their offices and continue their work from home and, if this was your case, you can present the deduction called 'Home office expenses'.

All you have to do, according to the expert, is to calculate the size of the room from which you directed your operations during the health crisis and give your accountant a sum of the expenses, for example: electricity, telephone, internet or the computers you bought.

In this way, the professional you choose can help you with your statement.

Now, if your company was forced to use part of the funds from the PPP loan to cover expenses other than employee salaries, "I don't think there is a need to worry," says León.

And it is that, although the PPP is a loan that was designated to cover the salaries of the employees and to maintain the assets, the Law also covers that other types of expenses can be used with said loan.

For example, bills for electricity, telephone or the purchase of materials.

"The important thing is that most of the loan is used for salaries and the rest for other expenses," emphasizes the accountant.

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Whereas, if your company was approved for a credit for the pandemic, you should not declare it because it is not considered as income.

However, if you received an emergency advance from the SBA that could amount to between $ 1,000 and $ 10,000, this part should be reported on your taxes as income.

Said returns must be filed four and a half months after the end of the fiscal year.

For example, if the tax year ended on December 31, 2020, corporations have to file their taxes before April 15, 2021. But, if you own an LLC, a multi-member partnership, or an S corporation. , then the best thing is that you file your taxes before March 15, 2021, indicated León.

If you have questions, visit the IRS.gov portal for more information. 

See also:

Unemployment assistance and stimulus checks, should you report them on your taxes?

The deadline to send your tax return is approaching and this you must do

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Source: telemundo

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