Business Taxes - Vyde

5 Commonly Missed Business Tax Deductions

Whether you know it or not, you could be leaving hundreds—even thousands—of dollars on the table by missing a few lesser-known small business tax deductions.
Entrepreneurs often miss some small business deductions they could qualify for because they didn’t keep accurate records throughout the year, or they shy away from the complications of itemizing each expense. Avoid overpaying taxes this year by making sure you’ve reviewed all small business deductions to see if you qualify.

5 of the Most Missed Tax Deductions for Small Businesses

Business-Related Meals and Entertainment. Just keeping receipts on a business trip isn’t quite enough. Business owners who have an especially wide network and social schedule often spend thousands of dollars on eating out and entertainment for/with clients throughout the year. Many don’t keep accurate records and aren’t sure if they can really classify the meetings as “business-related.” However, keep in mind, there is no hard and fast rule about how much of the meeting must be taken up by business talk. You can safely deduct 50% of your meals as long as you can show a new client lead or referral came from the meeting. If you haven’t been saving your receipts this year and think you may have missed deductions in this area, a bank statement will suffice.
Calculating Vehicle Expenses. Sure, $0.57 per mile driven can really add up when you take a road trip across the country to further your business. Most business owners find the Standard Mileage Rate to be more than fair, but it’s worth calculating vehicle expenses the hard way if you are really looking to save on your tax bill. Believe it or not, the “hard way” really isn’t all that hard. First, divide business-related by your total miles driven for the year. This will give you a percentage. Take that percentage and apply it to gasoline costs, car washes, new tires, oil changes—even a satellite radio fee or new seat covers. You can calculate “anything that is for the betterment of the vehicle.” Keep in mind that miles driven to and from the office each day do not count as “business.”
Home Office—The Hard Way. The IRS allows a simple home office deduction of $5 per square foot. Again, more than fair for some business owners, but others take the long route and find that it works to their advantage. Calculating your home office using the traditional method involves measuring the office square footage, and dividing it by the total square footage of the home. You can then apply that percentage to home-related expenses such as electricity, heating, mortgage payments, and home depreciation. Calculate your home office deduction both ways and find which works better for you.
Startup Costs. An often forgotten deduction comes in the form of expenses incurred before your business actually opened its doors. The great thing about startup costs is that there is really no limitation on how far back these expenses can be counted. If you took a continuing education class, bought a computer that is now used for work, took a future client out to dinner, you can count those as deductions. The IRS allows a deduction of up to $5,000 for the first year, and the rest amortized over the next 15 years.
Employee Expenses. If you reimburse clients for any business-related expenses, don’t forget to keep track. Other employee expenses include gas, meals, hotel accommodations, tips, baggage fees, etc. You can also deduct the cost of gifts given to clients, as well as wrapping and shipping costs associated with those gifts.

This is obviously not an exhaustive list of commonly missed tax deductions—pet moving expenses, the cost of quitting smoking, clarinet lessons (yes, all real!)—but these are certainly the most common for entrepreneurs and small business owners. If you need help knowing what is and isn’t tax-deductible and making sure you are within IRS regulations, our accountants can help. Reach out to us today!

Frequently Asked Questions:

1. How can I ensure I don’t miss out on small business tax deductions?

Maintain accurate records throughout the year. Review all possible deductions to maximize savings and avoid overpaying taxes.

2. What are the deductions related to business meals and entertainment?

Deduct 50% of business-related meal expenses if they contributed to new client leads or referrals. Bank statements can suffice if receipts are unavailable.

3. How do I calculate vehicle expenses for tax deductions?

Use the Standard Mileage Rate or calculate expenses based on the business-related percentage of total miles driven, including various vehicle costs.

4. What’s the process for claiming a home office deduction?

You can opt for the simplified $5 per square foot deduction or calculate expenses using the traditional method based on office square footage.

5. What are deductible startup costs, and how far back can they be claimed?

Startup costs incurred before business commencement can be deducted, with no specific time limit, up to $5,000 in the first year and the rest over 15 years.

How To Know If Your Small Business Needs an Accountant

When you’re starting out as a business owner, you’ve got to be scrappy. There’s no shame in trying to save a few dollars by managing multiple aspects of your business yourself. However, as your business grows, you’ll find that an endless list of “to-dos” makes it hard to do it all. You may find yourself dropping balls that shouldn’t be dropped.

The accounting side of your business is easy to fumble—especially if your mind is on a million other things. If you don’t have the time to devote or you don’t know what to look for, you could be making mistakes that drastically impact your business.

Risks of Being Your Own Accountant

Incorrect Data Entry:

When you’re busy, rushed, or distracted, it’s easy to enter incorrect data into your books.

Missed Deductions:

Because you’re a business owner and probably not an accountant, you may not know all the things you can deduct. Missing deductions costs your business money.

Missing Revenue:

Incorrect books can cause you to have revenue that is unaccounted for and you may never know.

Unpaid Invoices:

When your books are not in order, you may not notice an unpaid invoice—by you or someone who owes you.

Underestimate Tax Bill:

When it comes to paying taxes, no one likes to be surprised by a larger number than what they were expecting. Incorrect books can cause a miscalculation and underestimation of your tax bill.

Reporting is Unreliable:

How can you make business decisions with incorrect data? When your books are wrong, your reports will be too.

There are potential risks of DIY-ing your accounting, so how can you determine when the risk of being your own accountant becomes too much? When do you know it’s time to hire an accountant?

When you have no time.

When your schedule becomes too full to handle, you may find the need to delegate tasks to others to lighten your load. By investing in accounting services, you’ll be able to hand off the detailed job of bookkeeping to someone who can focus on it and get it done quickly and correctly. This way, you can spend your time worrying about other important things—like growing your business.

When you don’t know what to do.

You may have tried being your own accountant, but question after question kept coming up. When you feel as though you don’t have as much knowledge on bookkeeping or business taxes to confidently manage your business’ books, you have two options: learn it or delegate it. By hiring an accountant, you’ll be able to benefit from their in depth knowledge and know that your books are being taken care of.

When your books are messy.

If your books are unorganized, you could be making costly mistakes for your business. Things like missing revenue, unpaid invoices, and tax deductions all directly impact your business’ revenue. Having well kept books also ensures that you can pull correct reports—which help you to make data driven decisions about your business.

The decision to hire an accountant depends on where you are in your business, but remember—accountants exist to help you keep track of (and save) your business’ money. If you feel like you’re in over your head, it may be time to hire someone to tackle your bookkeeping for you.

FAQs:

1. What risks come with being your own accountant?

Common risks include incorrect data entry, missed deductions, overlooked revenue, unpaid invoices, and underestimating tax bills.

2. How does having incorrect books impact a business?

Incorrect books can lead to unreliable reporting, hindering your ability to make informed business decisions based on accurate data.

3. When is it time to hire an accountant?

Consider hiring an accountant when you lack time to manage your books, feel uncertain about bookkeeping tasks, or find your business’s financial records are messy and disorganized.

4. Why should I delegate bookkeeping tasks to an accountant?

Delegating to an accountant ensures that detailed bookkeeping is handled quickly and correctly, freeing up your time to focus on essential aspects of growing your business.

5. How can an accountant help if I don’t have much knowledge about bookkeeping or taxes?

An accountant brings in-depth knowledge to manage your books effectively, providing expertise in navigating complex aspects of business taxes and bookkeeping.

What To Do After Filing a Tax Extension

During tax time, it goes without saying that pulling together the receipts and invoices, filling out the paperwork, and making sure you’ve got all your deductions lined up and in a row takes more time than you think. As we near the tax deadline, you might be thinking that it’s time to consider filing for a tax extension. And that doesn’t necessarily have to be a bad thing. Here are a few reasons why filing for a tax extension could be a huge benefit to you and your business:

you gain 6 months to file
relieve the stress of pulling it all together by the tax deadline
more time and less stress means you’ll make less mistakes and not forget any important pieces to the financial puzzle
you’ll be able to find missing info or verify things that may seem inaccurate

If you owe taxes and you aren’t able to pay them, we highly suggest that you don’t file for a tax extension. Tax extensions only give you extra time to file, not extra time to pay so you’ll want to make sure that you make any payment in the amounts that you think you may owe when you file for your extension. If you’ve got questions regarding your specific tax situation, we’d be more than happy to answer them.

What To Do After You File For Your Tax Extension

Once you’ve decided that you can benefit from a tax extension (and it’s for the right reasons), it’s time to make sure you’ve got your bases covered. You’ll complete the tax extension paperwork and submit it to the IRS, but you’ll need to make sure you take care of a few important aspects once you’ve finished submitting your tax extension.

Getting Started with Income Taxes – FREE Checklist!

It’s a new year and you’ve got a list of business goals that you’re ready to tackle. Not so fast though – you’ve got to prep & file income taxes! Maybe you’re ahead of the game and spent the last quarter of 2018 pulling it all together, or maybe you’re a tax expert and you’ve been following a plan and keeping things in order over the course of the whole year.

But honestly, most people fall into the third camp – the “oh yeah, I’ve got to get the tax stuff ready” group. So make things easy when it comes to the prep & file income taxes task. Here are our top tips and you can follow the link to grab a checklist (prepared by an actual accountant) so you can fast track your to dos.

Tips for Filing & Prepping Your Income Taxes

pull out a large envelope or file folder and put all the important stuff there – fast track for 2019 and put together a folder right now so you can stash stuff over the course of the year and be ahead of the game
make a list and break it down into manageable chunks – there’s no reason to spend a whole day on it when you have other things to do. You can easily spend 5-10 minutes today and still get your taxes filed way before the deadline
when it comes to filing – consider what it’s really going to take. Maybe you’ve got a bunch of questions, no budget to purchase the latest DIY tax filing software, and even less time to get it all done. Know how much time you have to commit to it, and then make a decision about how you’ll file – DIY, hire an accountant, visit a tax filing kiosk set up at a local business etc.
Pull all the personal information that you’ll need to verify or provide in advance. Remember you’ll need full names, social security numbers, dependents, etc.
keep an eye out for tax forms from your employer, bank accounts, charitable donations, student loans, mortgages, etc. You should receive them in the mail or electronically in the next several weeks
take a few minutes to sit down and brainstorm any possible deductions for the year. If possible, find receipts or check bank statements so that you have accurate numbers and proof to provide to the IRS in case your audited
make things a little bit more fun – turn on some music, work alongside a friend or family member, have your favorite snack or beverage so that prepping & filing for taxes isn’t such a chore

You can download your tax checklist here

Conclusion

Getting started with income taxes can seem daunting, but with the right approach and preparation, the process becomes much easier to handle. By understanding key concepts like deductions, credits, and tax filing requirements, you can ensure that you’re on the right path to managing your taxes efficiently. Whether you’re filing for the first time or are simply looking to improve your tax strategy, taking the time to plan and organize your financial documents will make a significant difference.

If you find yourself feeling overwhelmed or need professional guidance as you get started with income taxes, don’t hesitate to reach out for expert help. Vyde, the most trusted accounting firm in the U.S., is here to assist you every step of the way. Contact us today to ensure your taxes are filed accurately and with confidence!

When to Claim the Standard Tax Deduction & When to Itemize

Whenever you are making a charitable donation you’ll want to get a receipt so that come tax time you can decide if you should take the standard deduction or if you should itemize.

What is the standard deduction?

Like we said before, the standard deduction is based on your tax filing.

For 2016 taxes these are standard deduction rates.

Single taxpayers – $6,300
Married taxpayers filing a joint return – $12,600
Head of household taxpayers – $9,300

How to calculate an itemized deduction.

How to Get a Tax ID for Your Small Business

What is a Tax Identification Number?

A Tax Identification number is the same as an Employer Identification Number (EIN). The IRS uses this number to identify your business entity, just like they use your Social Security Number to identify you for your personal taxes. Applying for a Tax ID is simple and can be done online. Don’t be fooled by companies offering to file for a Tax ID for you – it’s a simple process you can accomplish on the IRS website for free and most people don’t need any help to complete the application.

Do You Need a Tax Identification Number?

Figuring out if you need a Tax ID is just about as simple as applying for one. The IRS says that you need a Tax ID if:

your business operates as a corporation or or partnership
you have employees
you without taxes on income others than wages paid to a non-resident alien
you have a Keogh Plan (tax-deferred pension plan); or
you’re involved with organizations including:
- trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
- estates
- real estate mortgage investment conduits
- non-profit organizations
- farmers’ cooperatives
- plan administrators

In addition to filing taxes you may also need an EIN to open a bank account or apply for a credit card in the name of your business. Even if you’re business entity is currently a sole proprietorship you can still get an EIN and use it the same way, although it’s only required for those businesses that fall under the details listed above.

What You’ll Need to Apply & What to Do With Your EIN

Now that we’ve established what an EIN is and if you need one, lets talk about the nuts and bolts of securing your EIN from the IRS. You can apply for an EIN by fax, phone or email but the quickest way, and the way the IRS prefers, is online. The process will take only a few minutes, but you’ll need to have the answers to a few questions beforehand:

the type of EIN are you applying for – sole proprietorship, corporation, LLC, partnership or estate
the reason why you are applying for an EIN – it can be as simple as starting a new business or banking purposes or any number of other reasons
your legal name and Social Security Number

With the online application you’ll have access to your newly generated EIN as soon as you submit your application. The IRS provides an official document that you’ll download to your computer – make sure to save this digitally as well as print a paper copy to save with your other business records.

How to Figure Out & File Sales Tax for Your Small Business

There is a lot to manage when you’re running a small business, but one of the most important things to take care of is managing the books. In addition to understanding what money is coming in and out of the business on a day to day basis, you’ve also got to be sure you’ve got things set up correctly for collecting and paying taxes.

Sales tax is probably one of the most confusing transactions that occurs, mainly because there’s a lot of gray area for those that run small businesses or sell online.

Sales Tax Defined

Sales tax is money collected at a retail’s point-of-purchase and is imposed by both state and local governments. It’s paid by the individual that is making the purchase, but that means as a small business owner you’re responsible for the following:

Figuring out the amount of sales tax that should be paid

Collecting the sales tax from the person purchasing from you

Turning over sales tax to the appropriate authority by the deadline outlined

Sales tax rates vary from state to state, which can lead to some confusion if you sell in more than one state or if you sell online.

Do You Need a Permit?

It depends on what your state requires. The best way to answer this question and many more for your specific state is to access state tax resources.

Not sure where to find your state requirements. You can look them up here.

How To Collect & When to Pay

You’ll need to check with your specific state for all the details but the general process of collecting and paying sales tax is as follows:

You’ll record and report all sales, whether they are taxable or exempt, and the amount of tax due.
You’ll submit a special tax return for sales taxes – usually states require small businesses and online shops to pay sales taxes quarterly and sometimes even monthly.
Not paying on time means that you’ll be subject to late fees. Checking out the requirements for your specific state and/or consulting with a tax specialist or CPA is the best bet for making sure your system for collecting sales tax is in compliance with government requirements.

Sales that are Tax Exempt

You may have noticed that we mentioned in section above exempt sales and you may be wondering what all that involves. Although there may be exceptions, the general rules for tax exempt sales is as follows:

Resold items – retailers don’t typically have to pay sales tax on wholesale purchases since it’s assumed that the end consumer will pay sales tax on them at the end point-of-purchase. That said, many states require that you have a wholesale license, so you’ll need to check into the requirements and how to apply for one for your specific state.

Non-profits – sales made to non-profit organizations are also exempt

Raw materials – if you selling goods that will be made into other goods, they’re most likely considered raw materials and are typically tax exempt as well.

Selling Online & In More Than One State

This is where things can get a little tricky. If you sell online, your customers can live virtually anywhere and what state exactly is the sale made in? And what state’s rules do you’re follow – your state, or the state that you’re buyer lives in?

The first thing you need to determine is where your business has a physical presence. Wherever your store, office, warehouse, employees, etc. are you most likely have physical presence, also known as nexus.

You MUST collect sales tax for your nexus.

If you do not have a presence in a state then you are not required to collect sales taxes. To make sure you’re applying the rules for nexus correctly, make sure you check the requirements for the states that you have physical presence in.

Sales Tax Rates for Selling Online or Out-Of-State

Once you know that you need to charge sales tax, it’s time to determine what rate you should charge. It sounds a little overwhelming to manage due to the thousands of sales tax jurisdictions in the United States.

Our best advice for those that sell online or have a large volume of out-of-state sales is to invest in online shopping cart and sale transaction software because many automatically calculate sales tax rates for you.

Now that you’ve got the details on sales tax, what questions do you have for us? We’d love to hear them in the comments.

Where’s My Tax Refund & Other Tax Filing Information

You beat the rush and filed your taxes early. Having the stress over with is nice, but having that cash from your tax refund in your bank account would make the success of getting it done all that much sweeter, right? It’s true that the IRS issues more than 9 out of 10 refunds in 21 days, but it’s also possible that a review of your tax filing may take additional time. If you’ve ever wondered what happens between the time you file and when you get your refund and how quickly you’ll get that money back from the IRS, read on.

Your Tax Filing’s Journey

Once you, or the tax professional you hired, hits the submit button on your tax filing it’s just a waiting game on your side. That said, your submitted taxes aren’t just sitting around. Here’s how it all works out:

your tax return is hit with a “time stamp” or an electronic postmark – this keeps us all on track and puts your return into the system before it’s passed on for review.
The IRS has 24-48 hours to accept your return. This process includes them checking the personal information submitted with your tax return against the information they have for you on file.
If/when all the information checks out, the IRS officially accepts our return and you’re put on the IRS payment timetable.

From there your tax filing is processed and reviewed and only the IRS knows that status and whether or not you owe taxes or should be issued a refund – how you file also adds to the length of time your return takes. That said, you can start checking your status 24 hours after you’ve e-filed your paperwork by accessing the IRS’s tool Where’s My Refund?

E-file & Direct Deposit

If you e-file your taxes, you have fairly good odds that you’ll get your tax refund quicker than doing it the old fashioned way. E-filing provides you with the option to have our refund directly deposited into your account and it’s the safest, and fastest, way to receive your refund – not to mention the easiest process to complete. However, if you’re still filing a paper version of your taxes, you can still take advantage of the direct deposit method.

To take advantage of getting your tax return by direct deposit you simply need to provide the account and routing numbers for the account you’d like the money deposited to. There will be a spot to input the numbers on your return if you’re using a tax software program to do it yourself or you can provide the information to the professional that’s taking care of the filing for you.

Regardless of your method, direct deposit definitely gives you quicker access to your refund than a paper check coming to you in the mail.

What to do with That Refund?

Federal tax refunds are often the largest single check many people receive – so it’s a great time to start saving or even invest a portion of your return. You can easily divide your refund into two or three additional bank accounts with a submission of just one extra form. This option gives you the chance to manage your money – sending some to one account for use while the rest goes to savings or investments for future use.

Lower Your Taxes by Implementing These 3 Year-End Contribution Ideas

During Q4, tax season seems like it’s lightyears away. But prepping for tax season now, can save you time and money come tax time. Here are 3 year-end contributions you might want to consider before you ring in the New Year, and how they’ll help your bottom line.

Year-End Contribution #1: Charitable Donations

No one will refute that it’s the season for giving. But did you know that giving can provide you with tax write-offs in addition to a host of warm fuzzies? It can. Charitable donations can impact taxes for the year in which they were given. To claim donations on your tax return here’s what you need:

Receipts are required from all IRS-qualified charities for any donations larger than $250 if you’re going to claim them.
You don’t always have to donate cash – household items, cars, boats, etc., can also be contributed. In such cases a specified amount can be deducted from such donations.
If you’re claiming donations to individual charities, you’ll need to itemize the deduction, rather than claim the standard deduction that is set each year by the IRS.

Tip: Even if you’re not planning to donate now, maybe you’ve donated sometime this year. Take a few minutes and pull out your books, calendar, and bank statements. Review them and gather the necessary paperwork so you’ve got it ready for tax time.

Year-End Contribution #2: Health Savings Account

Invest in your health. It’s something you’ll spend money on anyway, so why not put away some cash in your Health Savings Account (HSA). An HSA allows any unused money to rollover into the following year and when the money is used to pay for qualified medical expenses is tax-free.

Tip: Now is the time to check into HSA options if you don’t already have one. If you have it, but aren’t sure where you’re at, check into your balance, scheduled needed appointments, and see if you’re taking advantage of any employer matching opportunities. Even consider raising the amount you contribute each month so you’re building a reserve for those unexpected medical expenses that may crop up.

Year-End Contribution #3: Retirement Savings

It’s always a good time to consider investing in your future. In fact, it can provide you with a tax break now, and cash later. Any contributions made to retirement accounts are deducted from your taxable income, which can lead to reducing the amount of taxes you owe or possibly increase your refund.

IRAs allow for contributions to be made for the previous year right up until the tax-filing deadline. But if you’re looking to stash some cash into a 401(k) and take advantage of any employer matching, you’ll need to act before year end (Dec 31) or check out the specific requirements for your plan.

Tip: Talk to your accountant and see what type of suggestions they’d make when it comes to contribution to your retirement savings. They’ll have a handle on all the ins and outs and can help you strategically place your money so it’s working for you both now and in the long run.

So with these 3 suggestions in mind, what plans do you have to lessen your tax load before year end? If you’re got questions, lets talk.

FAQs for Year-End Tax Prep and Contributions

How can charitable donations impact my taxes?

Charitable donations can provide tax write-offs for the year in which they were given. To claim these deductions, you need receipts from IRS-qualified charities for donations over $250. Non-cash items like household goods, cars, and boats can also be deducted if itemized properly.

What documentation do I need for claiming charitable donations?

To claim charitable donations, you need receipts for any contributions over $250 from IRS-qualified charities. For non-cash donations, you’ll need to determine and document the fair market value of the items. Ensure you itemize these deductions on your tax return.

What are the benefits of contributing to a Health Savings Account (HSA)?

Contributions to an HSA are tax-deductible, and funds used for qualified medical expenses are tax-free. Unused money in an HSA rolls over to the next year, allowing you to build a reserve for future medical costs. Check your balance and consider increasing contributions to maximize benefits.

How do retirement contributions affect my taxable income?

Contributions to retirement accounts, such as IRAs and 401(k)s, reduce your taxable income, potentially lowering your tax bill or increasing your refund. For 401(k) contributions, ensure they are made by December 31 to take advantage of employer matching and year-end benefits.

When should I make contributions to my IRA or 401(k) to benefit my taxes?

IRA contributions for the previous year can be made until the tax-filing deadline. However, 401(k) contributions should be made by December 31 to take advantage of employer matching and reduce your taxable income for the current year. Consult with your accountant for specific deadlines and strategies.

How an External Accountant Can Help Your Business Through a Natural Disaster

Trying to recover after a natural disaster is incredibly overwhelming. But, trying to get your business to recover can be a whole new headache. Using an external accountant, an accountant that doesn’t work from your office, can be beneficial because it’s one less thing on your plate. An external accountant can help take some of the load off and help you get your business back on track.

Here are a few ways an external accountant can help you and your business through a natural disaster.

An External Accountant Will Have Your Records

Damage to your office can mean that you lose a lot of important documents. As you know, documentation is an important part of taxes and bookkeeping. If you’ve lost your documentation, you may be in trouble when you need to claim a tax deduction; however, an external accountant can come to the rescue.

When you use an external accountant, you normally send them documents showing purchases, income, and more. Which means there is a backup of all of your documents in another location. Because of this your accountants can replace those lost documents.

If you’re in the opposite situation, where your accountant’s office is in a natural disaster, then you are still covered. The IRS grants you a filing extension, which we’ll go into more in depth later.

Accountants Can Help You Find Natural Disaster Tax Credits

Tax credits are available to business that have suffered from natural disasters. In order to qualify for tax credits or deductions, the president has to declare your area as a “federally declared disaster area.”

One of the credits available to business owners in a natural disaster is the natural disaster casualty loss break. The casualty loss break allows people who have been affected by a natural disaster to file an amended tax return on the previous year’s taxes. This is helpful so that people can get a refund quickly, instead of waiting until the next tax season. The rules for casualty loss differ between business and personal property, so make sure you talk with your accountant and find out exactly what your business needs to do to use the tax credit.

You will need to assess and document the following areas in order to take advantage of disaster tax credits.

Determine and list all of your property that was destroyed or damaged in the disaster.
Find out the original cost (or the adjusted cost) or each damaged item.
Learn the fair market value of the items before the disaster struck. (What were they worth?)
Determine the current worth of the property.
Add up the reimbursements and/or other payments you have received, or plan to receive, from insurance.

External Accountants Can Help You File Taxes on Time

To ease the burden on victims of a natural disaster the IRS can extend tax filing dates. When IRS does extend filing dates, it only applies to areas designated as federal disaster zones. The IRS has already issued tax extensions for victims of Hurricanes Harvey and Irma.

After a federally-declared natural disaster, the IRS allows businesses more time to send in payroll taxes and returns. As long as you send them in before the new deadline, the IRS will wave any penalties or interest that may have accrued.

Whether the IRS has granted your natural disaster a tax extension or not, an external accountant, like Vyde, can help you get your taxes in on time.

FAQs

What are the benefits of using an external accountant after a natural disaster?
An external accountant helps reduce your stress by managing your financial recovery. They can access and replace lost records, help you claim disaster-related tax credits, and ensure timely tax filing even during challenging circumstances.

How can an external accountant assist if my business records are lost in a disaster?
External accountants typically store digital copies of your records. If your physical documents are destroyed, they can provide replacements, ensuring you have the necessary paperwork for taxes and insurance claims.

What natural disaster tax credits can my business claim, and how can an accountant help?
Your business may qualify for tax credits like the casualty loss break if your area is declared a federal disaster zone. An external accountant can guide you through the process, helping you assess damages, document losses, and file for tax credits.

What happens if my accountant is also affected by the natural disaster?
If your accountant is impacted, the IRS typically grants tax filing extensions for federally declared disaster zones. An external accountant can still manage your tax filing to ensure compliance, even with extended deadlines

Can an external accountant help me meet tax deadlines during a disaster?
Yes, they can. External accountants stay updated on IRS extensions and ensure you meet revised deadlines. They’ll manage the filing process so you can focus on recovering your business.

Resources

Category: Business Taxes