Business tax forms are complex and best left to professionals
Depending on the level of wealth, there may be many for a person to file and only a few tax forms. If the individual is very wealthy, the tax forms could be in the form of a telephone book. If the individual’s income falls in the median range, tax forms may list only a few. With individual taxes, an individual may choose to file the forms themselves, again depending on the wealth of the individual. People with average incomes can easily file the forms. Rich people are better off leaving the presentation to a professional.
Business taxes are a completely different ball game than individual taxes and really require the assistance of a professional. Generally, companies are required to file taxes quarterly, while individuals file annually. A company also has to file taxes not only on income, but also on what it has paid people in the form of salaries and bonuses. Quarterly reports or tax forms are required for every state in the union and there is also a federal form that must be filed quarterly. This can really be overwhelming, typically a company will either outsource the work to an accounting firm, bookkeeping firm, or payroll firm to report employee earnings or have in-house accounting professionals prepare the forms.
Businesses do not have the same leeway as an individual if there are strict guidelines for reporting and if the business misses the deadlines and does not follow the forms properly and adhere to all the guidelines, the business will usually face heavy penalties. .
Business tax forms are often quite complex. Businesses are given certain tax breaks and there are specific laws that govern businesses that do not apply to the individual.
Accounting firms are usually the professionals who prepare tax forms for businesses. The company provides the necessary information to the accounting firm and the accounting firm uses that information to prepare the forms. The business representative is responsible for signing and certifying all forms. Usually, the company representative is the president of the company or a partner of the company. A business cannot delegate an employee to sign tax forms. The IRS will continue to hold the president’s partners accountable for information submitted on tax forms.
Business taxes should be taken very seriously, because the government takes taxes very seriously. Some of the harshest punishments out there are for tax evasion. The penalties are severe and can result in jail time in addition to monetary fines.