As a small business owner, you must know about filing taxes timely to eliminate penalties. However, contact an accountant in Westchester County, NY, if you do not want to pay taxes and want to know how long a small business can run without filing taxes. This article is a complete guide on how long your business can run without filing any taxes. Let’s dive in!
How Long Do You Have To File Your Taxes?
According to the IRS, your small business has to pay taxes at the end of every financial year. So, it can be said that you have to pay taxes every year without fail, or else it may lead to hefty penalties. There are no such allowances or guidelines for which you can skip your taxes for one or two years.
However, in case of emergencies like medical issues, the death of a person, or a natural disaster like an earthquake, floods, or other out-of-control disruptions in the business, you can borrow time to file taxes.
If you haven’t paid taxes for a particular year, they won’t come to your doors. However, you must pay failure-to-pay and failure-to-file fees until the tax is cleared.
Tax Filing Deadlines For 2023
Generally, the taxation day after the financial year ends is 15th April. In case it falls on Saturday, the date gets shifted. For example, in the case of 2023, it is Saturday, 15th April, and the tax date will be 18th April. The date you will file taxes depends on factors like your business entity, state you operate in, tax status, type of return in case you have requested an extension, owed refunds and taxes, and location.
What If A Business Does Not File Taxes?
In case the business fails to file taxes, they are prone to penalties. There are several penalties charged based on different situations. Here are some potential penalties that can be charged if you don’t pay taxes rightfully.
- Failure to file a penalty
- Failure to pay penalty
- Penalty of underpayment of calculated taxes
- Accuracy-related penalty
Besides these penalties, an interest is charged by the IRS if the taxes are not paid.
If you’re a small business owner, you must pay taxes timely to avoid any kind of penalties for your business. Hire an accountant today and get your taxes sorted.