Small Business Tax Advisors
At RC Jones & Associates, we don’t like to think of ourselves as just accountants or bookkeepers. We take pride in our holistic approach to helping you manage the financial aspects of your business. Among the many services we offer small business owners is tax consultancy services — think of us as your own small business tax advisors!
Business Taxes Done Right
Navigating the murky waters of taxes is challenging enough as an individual, and business taxes don’t get any easier. We don’t just throw around the term “reputation by recommendation,” we’ve earned it. Our tax consultants have helped countless businesses in a number of industries take care of their taxes in an efficient and professional manner.
From construction contractors and manufacturers/distributors to real estate and even health care clients, we’ve seen just about everything. If you’re dreading tax season, contact RC Jones & Associates to set up a free consultation to see if we might be a good fit for you.
Why Choose RC Jones & Associates?
RC Jones & Associates has been serving businesses with robust tax consultancy services in both Kansas and Missouri for years, and we’ve managed to grow through our philosophy of “reputation by recommendation.” We go the extra mile for our clients so that they won’t hesitate to recommend us and our services to a friend or fellow business owner.
We understand that running a business is challenging, and if you start to fall behind on your bookkeeping or filing taxes, it can seem almost impossible to catch back up. Luckily RC Jones & Associates are here to help — we’ve helped a number of our clients catch back up and maintain compliance with both Federal and State tax returns.
If you’re already struggling with compliance and filing your tax returns, or you fear that day is coming, reach out to RC Jones & Associates for a free consultation.
Common Tax Pitfalls for Business Owners
Like we said, taxes are tricky and tax filing for businesses can be even trickier. Business owners are at a much higher risk of incurring tax penalties than an average employee since taxes are deducted straight from their paycheck. Below are just a few common tax penalties that businesses should be wary of, as well as what the cost may be:
• Tax Fraud — This offense draws the harshest penalty from the IRS, and it’s typically the easiest to avoid as long as you’re always attempting to file and pay taxes in an honest manner. Tax fraud involves willfully under-reporting on your taxes, and it can incur a 75% penalty of the underpayment amount.
• Trust Fund Recovery Penalty (TFRP) — Businesses with employees (so almost every business) are required to withhold and pay payroll taxes, or trust fund taxes as these are held by the business in “trust.” Since the income tax and FICA (Social Security & Medicare) that are rolled into payroll taxes are supposed to be withheld from employee paychecks and sent to the IRS on a monthly basis, missing these payments can result in hefty penalties.
• Accuracy errors — If the IRS finds significant errors or underpayment of taxes on your tax return through negligence, they can charge a 20% penalty of the tax amount owed.
• Failure to pay taxes or late payment — As mentioned above, the penalties for failure to pay or late payment are much smaller than failing to file or late filing. Late payment penalties are only .5% per month as opposed to 5% per month past the due date. So make sure to file or get an extension
• Failure to file taxes or late filing — The IRS can penalize you 5% per month past the due date for the tax amount owed, plus interest! Filing is extremely important, especially since the penalties for failure to pay or late payment are much smaller. Even if you know you can’t pay your taxes, it’s still in your best interest to file.
• Underpaying estimated taxes — While paying 100% of the taxes you owe is preferable, and maintaining that should keep you out of trouble with the IRS, just know that failing to pay at least 90% of your current year tax bill will likely result in a penalty. The IRS is typically lenient on this and there are ways for them to waive the penalty as long as it was not done out of willful neglect. But the best way to avoid the penalty is to keep accurate books so you can file and pay your taxes accurately.
As you can see, there are plenty of ways for a business to run afoul of the IRS, and not necessarily on purpose, either. To ensure that your business doesn’t incur penalties from the IRS on your tax returns, visit RC Jones & Associates — we can help.
Does having an airtight business protected from IRS penalties and the stress of putting together all of the various tax paperwork together each tax season sound appealing? Schedule a free consultation with RC Jones & Associates by filling out the form below to learn more about our tax consultancy services, and if they’re right for your business.
We’re even happy to provide you with references of clients we serve in similar industries, so you know that we have the expertise necessary to help your business. We didn’t come by our philosophy of “reputation by recommendation” by accident.