The time when you must file tax returns is undoubtedly the most difficult and challenging time of your life. The chaos and stress is doubled especially if you are an organization or business. Fortunately, there is a solution to steer of complex filing by hiring Tucson tax preparation services. Such service providers have already handled countless of tax applications for the past several years. Thus, they are in a position of ensuring a smooth and hassle-free service.
No Liked the Process
Let’s face the fact that it is a burden for businesses, organizations or companies to collate, compile and assess their financial transactions in filing the necessary returns for their business and keep its existence.
Leaders, heads and CEOs of these companies are very much aware of the potential consequences when filing inaccurate returns for themselves, their company and their employee.
Basically, it’s a huge financial setback waiting to happen.
This is how crucial and integral proper and accurate tax preparation is. After all, this is the way how government guarantees that there’s credibility and clarity on your finances.
And allow me to share couple of different scenarios if you fail to file your income tax for a given year.
Number 1. In cases where the discrepancy, omission or error was made without intentions to evade taxes, the responsible party might face Income Tax Act which is:
- Face a penalty of roughly 200 percent of amount of tax undercharged
- Pay fine of up to 5,000 dollars and/or;
- Be imprisoned for 36 months or 3 years
Number 2. In cases where discrepancy, omission or error was made with an intention to evade taxes, then the following consequences are applied:
- Face a penalty of roughly 400 percent of amount of tax undercharged
- Pay fine of up to 50,000 dollars and/or;
- Be imprisoned for 60 months or 5 years
How to Prevent Unnecessary Consequences?
Please follow handful of tips below to make sure that you can accurately file your tax returns and avoid these consequences.
Keep a copy or the original receipts – all receipts are vital to have credible and transparent financial report. You may assign someone from your accounting department or team to monitor any financial transactions that your business makes in real-time.
Read articles and magazines related to business – in-depth and broad knowledge in marketing and finance goes a long way. It sets as your cornerstone in learning the best practices for tax preparation.
These might be simple things but failure to do it correctly can put a massive hole on your accounts and reputation.