How To File Sales Taxes
As the owner of a small business, you will be responsible for filing your income tax returns, as well as your sales tax returns. Whether you provide services or a product to the public, you will need to charge and collect sales tax on your customer transactions. The sales tax charged, either GST, PST, or HST, or a combination of the three, will differ based on the products sold and where in Canada you are located. Learn more about the provincial sales tax here.
Once youve collected your sales tax for an accounting period, you will need to send this money to the CRA. Depending on your filing periods, you will need to file sales taxes monthly, quarterly, or annually. To help you prepare your sales taxes and determine if you are required to file online or through the mail, the CRA recommends using the GST/HST Return Working Copy.
Pay Social Security Taxes To Qualify For Benefits
Self-employed individuals have to pay Social Security taxes through their estimated tax payments and individual income tax returns. By filing a return and paying the associated taxes, you report your income so that you may qualify for Social Security retirement and disability benefits when you need them.
Filing Past Due Tax Returns
File all tax returns that are due, regardless of whether or not you can pay in full. File your past due return the same way and to the same location where you would file an on-time return.
If you have received a notice, make sure to send your past due return to the location indicated on the notice you received.
Recommended Reading: Www Aztaxes Net
Get Your Wage And Income Transcripts From The Irs
If you do not need an attorney or CPA, follow these steps to file your back tax returns.
A wage and income transcript shows data from information returns such as Forms W-2, 1099, 1098 and Form 5498. Current year information may not be completely available until July.
You should a transcript for each year that you are filing. If you made estimated tax payments, you should also order a copy of your account transcript for each year.
You can request a transcript online or by mail.
Can I Still Get My Tax Refund If Im Filing Back Taxes
Yes, if you file the return within three years of the original due date. This time limit also applies to claiming tax credits like the Earned Income Tax Credit . Tax credits and deductions can significantly reduce your tax liability, so its in your best interest to file within this three-year window to get the tax breaks and the refund you deserve. If you have a prior year return that you still need to file, you can get started for free today with TaxSlayer.
The information in this article is current through tax year 2021 .
Don’t Miss: Is Freetaxusa A Legitimate Company
Collection And Enforcement Actions
The return we prepare for you will lead to a tax bill, which, if unpaid, will trigger the collection process. This can include such actions as a levy on your wages or bank account or the filing of a notice of federal tax lien.
If you repeatedly do not file, you could be subject to additional enforcement measures, such as additional penalties and/or criminal prosecution.
How The Irs Pays Refunds For Back Taxes
Like other tax returns, the IRS can pay refunds to you via either direct deposit or a check. Make sure to choose the appropriate option on your tax return when you file. If you opt for direct deposit, always double check your account number before filing. You may not be able to get your money back of the IRS sends your refund to the wrong place.
An important exception to note is that the IRS only pays refunds via check for amended returns, which are tax returns you file to fix a mistake from a previous yearâs return. Also keep in mind that it may take about six weeks just for the IRS to process your prior-year tax return .
Get essential money news & money moves with the Easy Money newsletter.
Free in your inbox each Friday.
Sign up now
Recommended Reading: Wheres My Refund Ga State
Gather All Your Documents
Whenever you file a return, youll need all the forms that show your income for the tax year youre filing for. So if, for example, youre filing a return for the 2018 tax year, youll need any W-2s, 1099s, interest statements and other types of income statements that apply to that year.
Hopefully, you saved those documents in a tax records file. If youre missing information, you can request a wage and income transcript from the IRS for a previous year. The transcript will show all the information returns the IRS received on your behalf for that tax year, such as W-2s, 1099s, 1098s, IRA contributions you made and more.
And, if youre claiming certain deductions or tax credits, youll need to have all the necessary documentation, such as receipts for medical expenses or mortgage interest you paid during the tax year.
T2 Corporation Income Form
If your business is incorporated, you will need to file specific forms with your returns. The T2 form serves as a federal, provincial, and territorial income tax return for corporations in Canada. However, for those located in Alberta or Quebec, you must file a separate provincial corporation return. All residential corporations must file a T2 return every tax year, even when there is no tax payable.
You can file your T2 form electronically using the internet, as in most cases, the CRA mandates electronic filing. To do so, you must use CRA certified software to fill in the forms accordingly. Once the forms are complete, you can submit your tax files online, or print them off and submit by mail.
ProTax is a cloud-based software built into QuickBooks Online Accountant, covering basic T2 tax forms, and is fully CRA certified.
Also Check: Doordash 1099 Nec
Mailing Address For Back Taxes
| Your residence |
|---|
Kansas City, MO 64999-0002 | Internal Revenue Service
P.O. Box 1214
Charlotte, NC 28201-1214 || Alaska, California, Hawaii, Washington | Department of the Treasury
Internal Revenue Service
Fresno, CA 93888-0002 | Internal Revenue Service
P.O. Box 7704
San Francisco, CA 94120-7704 || Arizona, Colorado, Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, Oregon, North Dakota, South Dakota, Utah, Wyoming | Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0002 | Internal Revenue Service
P.O. Box 802501
Cincinnati, OH 45280-2501 || Connecticut, District of Columbia, Maryland, Rhode Island, West Virginia | Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0002 | Internal Revenue Service
P.O. Box 931000
Louisville, KY 40293-1000 || Delaware, Maine, Massachusetts, New Hampshire, New York, Vermont | Department of the Treasury
Internal Revenue Service
Kansas City, MO 64999-0002 | Internal Revenue Service
P.O. Box 37008
Hartford, CT 06176-7008 || Florida, Louisiana, Mississippi, Texas | Department of the Treasury
Internal Revenue Service
Austin, TX 73301-0002 | Internal Revenue Service
P.O. Box 1214
Charlotte, NC 28201-1214 || Illinois, Michigan, Minnesota, Ohio, Wisconsin | Department of the Treasury
Internal Revenue Service
Fresno, CA 93888-0002 | Internal Revenue Service
P.O. Box 802501
Cincinnati, OH 45280-2501 || Pennsylvania | Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0002 | Internal Revenue Service
Complete And Mail The Forms And Pay Anything You Owe
You may be able to use an online tax preparation service to complete the forms, but you wont be able to e-file your back tax return. Youll need to print out and mail the forms to the address listed in the 1040 instructions for the tax year youre filing. If youre unsure how to proceed, a tax professional can help. You may also be able to get free assistance from the Volunteer Income Tax Assistance or Tax Counseling for the Elderly programs.
And if you have a tax liability back taxes, penalties and interest youll need to pay it or request a payment plan.
Also Check: Efstatus.taxact.com Login
What Documents Do I Need To File Small Business Taxes
There are many different accounting documents and business records you must collect come tax time. Download this small business tax checklist to ensure you have all the required documents needed to file your returns.
Once youve filled out the required tax forms and collected all applicable financial documents, what comes next?
We Provide Qualified Tax Support
E-file’s online tax preparation tools are designed to take the guesswork out of e-filing your taxes. Our program works to guide you through the complicated filing process with ease, helping to prepare your return correctly and if a refund is due, put you on your way to receiving it. Should a tax question arise, we are always here help and are proud to offer qualified online tax support to all users.
If you’ve ever tried calling the IRS during the tax season, you probably know that telephone hold times at peak periods can be hours long. Our dedicated support team enables customers to get their questions answered just minutes after a question is sent, even during peak times. Simply send us a “help” request from within your account and our experts will begin working on your problem and get you an answer as quickly as possible. Prefer to call us? We also provide full telephone support to all taxpayers filing with our Deluxe or Premium software.
Also Check: Is Freetaxusa Legitimate
Reasonable Cause For Late Filing
As an alternative to submitting late returns under this delinquent filer program, you may instead request relief by attaching a statement to your delinquent return, signed by a person in authority, stating your reasonable cause for the untimely return. However, if the request is denied, you will receive a penalty notice and the return will no longer be eligible for this delinquent filer program.
All You Need To Know Is Yourself
Answer simple questions about your life and TurboTax Free Edition will take care of the rest.
-
Estimate your tax refund andwhere you stand
-
Know how much to withhold from your paycheck to get
-
Estimate your self-employment tax and eliminate
-
Know which dependents credits and deductions
-
Estimate capital gains, losses, and taxes for cryptocurrency sales
-
See which education credits and deductions you qualify for
The above article is intended to provide generalized financial information designed to educate a broad segment of the public it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.
Also Check: How Do I Get My Doordash 1099
How Long Can The Irs Collect Back Taxes
There is a 10-year statute of limitations on the IRS for collecting taxes. This means that the IRS has 10 years after assessment to collect any taxes you owe. This is a general rule, however, and the collection period can be suspended for various reasons, thus extending how long the IRS has to collect your debt.
What If I Cant Afford To Pay Back Taxes
The IRS offers several options to assist taxpayers who cannot pay their tax liability. However, if you owe back taxes, its up to you to contact the IRS for assistance. If you do nothing, the IRS will continue to charge interest on your unpaid taxes.
Some options for individuals who cant afford tax payments include:
- Request to delay collections
- Apply for penalty abatement relief
- Request an installment agreement
Also Check: Do You Have To Pay Taxes On Donating Plasma
What This Notice Is About
We didn’t receive your tax return. We have calculated your tax, penalty and interest based on wages and other income reported to us by employers, financial institutions and others.
The CP3219N is a Notice of Deficiency . Once you receive your notice, you have 90 days from the date of the notice to file a petition with the Tax Court, if you want to challenge the tax we proposed.
Online Filing Sales Tax Returns
Like income returns, there are various options for individuals and businesses to file their sale tax returns online. GST/HST NETFILE and GST/HST TELEFILE allow individuals to file their sales tax returns directly online, and are the quickest and easiest options to use. As previously stated above, the My Business Account is also available for filing sales taxes, alongside other business-related taxes.
Individuals can also pay their net tax owed electronically through their Canadian financial institution using the Electronic Data Interchange option . However, those in Quebec will be unable to use this electronic service. Other internet-based filing services include the GST/HST Internet File Transfer, offering business owners the ability to pay their sales taxes to the CRA directly through their third-party accounting software.
You May Like: Internal Revenue Service Tax Returns
Where Do I Send Back Taxes
If the IRS mailed you a notice about your late taxes, you should mail your return to the address listed in that notice. Otherwise, where you mail your old tax returns depends on where you live and whether or not youâre including a payment with your return. The IRS instructions for Form 1040 of the year youâre filing for should also include the proper mailing addresses.
How Jackson Hewitt Can Help
Falling behind on your taxes can be a scary prospect but it doesn’t have to be. Lacking the necessary records can present a temporary roadblock, but there’s a very strong chance that the IRS has backups if you’re unable to get in touch with the original payers. For records where the IRS does not have copies, start with your own financial records then organize them.
If you need help requesting & getting all of your records in order, Jackson Hewitts team has a wide variety of tools to manage tax issues. Whether simple or complex, our team is trained to work directly with the IRS and keep our clients updated throughout the process. Contact us to learn about our resolution process and see how committed Jackson Hewitt is to working hard for the hardest working.
About the Author
Jo Willetts, Director of Tax Resources at Jackson Hewitt, has more than 25 years of experience in the tax industry. As an Enrolled Agent, Jo has attained the highest level of certification for a tax professional. She began her career at Jackson Hewitt as a Tax Pro, working her way up to General Manager of a franchise store. In her current role, Jo provides expert knowledge company-wide to ensure that tax information distributed through all Jackson Hewitt channels is current and accurate.
You May Like: Federal Irs Tax Return
Next Steps: Plan Ahead For Next Year
Filing accurate tax returns by the filing deadline and paying all the tax you owe on time goes a long way to help you avoid problems with the IRS. Dont wait to clear up your back taxes before getting a jump start on this years tax return.
Start a file for all your tax documents, such as income statements from your employer, interest statements from your bank or receipts for deductible expenses you hope to itemize. Having everything in one place will be helpful when its time to prepare your return.
You can use the IRS Tax Withholding Estimator to help ensure youre having the right amount of tax withheld from your paycheck. If you have too little withheld throughout the year, you could face a tax bill when you file next year. And if you withhold more than necessary, you could get a refund next year.
Relevant sources:IRS Publication 5123 | IRS Tax Withholding Estimator | IRS: Filing Past Due Tax Returns | IRS: Free Tax Preparation for Qualifying Taxpayers | IRS News Releases | IRS Internal Revenue Manual | IRS: Eight Facts on Late Filing and Late Payment Penalties | IRS Fact Sheet: Help Yourself by Filing Past-Due Tax Returns | IRS: Extension of Time to File Your Tax Return | IRS Topic No. 202 Tax Payment Options
About the author:
Read More
How Much Tax Penalties Cost
There are two possible penalties you could pay if you owe back taxes:
-
A failure-to-file penalty when you file late. Itâs worth 5% of your unpaid taxes and it accrues each month until it reaches 25% of your unpaid taxes. If you are owed a refund from the IRS, you wonât have to pay this penalty.
-
A failure-to-pay penalty applies any time you donât pay your full tax bill on time. Itâs worth between 0.5% and 1% of your unpaid taxes, accruing each month until it reaches 25% of your unpaid taxes. You donât have to pay this tax if youâre getting a tax refund from the IRS.
If you continue not to pay your taxes, the amount you owe could come out of future tax refunds, and the IRS could even put a lien on your assets or property. Read more about the tax penalties for filing your taxes late.
Read Also: Doordash Tax Deductions
Prepare And File Your Tax Returns
There are dozens of tax software providers available to electronically prepare and file your returns.
You may also qualify for free tax preparation software.
To prepare your tax returns, enter the information from your wage and income transcripts. If you have income that is not shown on the transcripts, you must still report the income on your tax returns.
