Tax Return Filing

Every year, you dread tax time. Wading through the mountains of paperwork, the disarray of receipt after receipt... and all while trying to do run your business successfully. Who really has the time, energy or sanity to complete the meticulous paperwork involved in tax return filing – and get it done on time! But if you submit late tax returns, there are penalties to be dealt with. You do have options; however, you just need to know what they are.

What is a Tax Return?

Firstly, an IRS tax return is the general name for the form used to file taxes payable to the federal or local government, which is filed with the IRS. This tax return form includes information such as your gross income, allowable deductions, tax credits and tax that is due.

As an individual taxpayer, you would file the tax return Form 1040 on a calendar-year basis. Corporations should file the tax return Form 1120 on either the calendar-year or fiscal-year basis. Also, tax returns must also be filed for partnerships using a Form 1065, estates with Form 706 and Form 709 is used for gifts you have received. The IRS, or the Internal Revenue Service, is the federal agency that is responsible for administering and enforcing the American Treasury Department's revenue laws through the assessment and collection of taxes and other related procedures.

What Happens with Tax Return Filing?

Filing tax returns involve sending the tax return to the IRS once all the forms have been completed. You can file tax returns either manually or electronically, although electronic filing (or e-file) is generally encouraged over manually filing where possible. This is because there are many benefits for electronic filing, compared to manual filing. Electronic filing offers secure, paperless filing of your tax returns and ensures that your filing is delivered as you will receive electronic acknowledgement when it has done so. It allows you to avoid unnecessary trips to the post office and the possibility of the tax return getting lost or delayed.

Also, you are able to file federal and state taxes at the same time. Finally, electronic filing offers payment options like direct deposit, electronic fund withdrawal and allows you to file early but pay later too. E-file also keeps a secure record of all your tax returns, to ensure that you hold onto your current and past tax returns as required.

Federal Tax Deductions that can Save You Money.

Claiming more federal tax deductions is a fantastic way to lower your tax bill. There are five easy ways that help you take full advantage of the federal tax deduction and ensure you don't overpay on your tax return. Firstly, if you own a home, check to see if the interest you paid on your mortgage is more than the standard deduction. If it is, it may save you money by itemizing. If you paid state or local taxes the amount you paid is tax deductable through itemizing as well. Money or items donated to non-profit organizations qualify as federal tax deductions for the value of the monetary donation, or the items given (as long as a receipt is received and a value placed on the items). Medical expenses can qualify as a tax deduction based on your adjusted gross income (AGI), but this can be a little difficult. Finally, miscellaneous tax deductions can be claimed on over 300 different reasons. For all these reasons it may be best to speak to a professional tax attorney to get everything you can.

Filing your tax return is vital, not only so that you do not incur penalties from the IRS, but so that you can make sure that you are not overpaying the IRS and that you are claiming every tax deduction you are eligible for. You worked hard in your business, and you deserve every penny!