If you were asked, would you casually write a check to the IRS for $ 10,000.00? Of course not! Few of us would these days.
So why do we fail to realize how much we are giving away to the government in decisions we don’t even give a second thought. What do we mean? If you are a corporation, you need to file a corporate tax return even if you do not have a profit. Some business owners, especially sole proprietors, know they are operating at a loss, and think this is not necessary. WRONG!
Think you filed an extension so you are home free? WRONG AGAIN! If you have filed an extension you need to know this is an extension to file– not an extension to pay. Interest is charged on taxes paid late even if an extension of time to file is granted. Furthermore, there is also a penalty assessed if you don’t pay in at least 90% of what you owe this year, or 100% of what was owed last year (whichever is less). And there can be interest charged on the penalties!