Being a good citizen requires you to file your taxes. However, for a variety of reasons, people occasionally forget to file their taxes. Colorado has strict fines, penalties, and even legal action for failure to file taxes, among other repercussions.
In the event that you fail to file your taxes by the due date, the Internal Revenue Service (IRS) will issue a failure-to-file penalty. For each month or portion of a month that your return is late, there is a penalty of 5% of the outstanding taxes, up to a maximum penalty of 25% of the unpaid taxes. In addition, you will incur a failure-to-pay penalty of 0.5% of the unpaid taxes every month, up to a maximum of 25%, if you don’t pay your taxes on time.
If you don’t file your taxes despite repeated demands from the IRS, they may initiate a lawsuit. In order to collect delinquent taxes, the IRS has the authority to encumber your property, seize your bank accounts, and even file a lawsuit.
The state of Colorado may impose its own penalties in addition to the ones that the IRS enforces. Colorado may fine you $5 per day, up to a maximum of $500, if you fail to file your state income tax return.
Yes, LLC members who report their company income on their personal tax returns can use TurboTax Self-Employed.
Can I File My Personal Taxes Along With My Small Business Taxes? Schedule C, which is a section of your personal tax return, is where you can list your business’s earnings and outlays if it is a sole proprietorship or a single-member LLC. However, you must submit a separate business tax return if your company is a partnership or an LLC with multiple members. Can My LLC Cover the Cost of My Phone?
You can write off the costs of using your vehicle for work-related activities, including gas, insurance, maintenance, and repair. Car payments, however, are not allowable as a company expense. Alternatively, you can figure your deduction using the regular mileage rate or the depreciation of your vehicle.
Even while it’s crucial to preserve receipts for tax-deductible costs, there are some things you might be able to deduct even without them. Examples include up to $250 in philanthropic contributions, specific work-related expenses, and mileage for charitable or medical purposes. However, it’s always better to speak with a tax expert to make sure you are adhering to the right procedures and taking full advantage of your deductions.