tip #1 Gather your records and file all your tax forms immediately, even if you can’t pay a cent. tip #2 Write a letter and attach it to your forms explaining your financial situation. The IRS will work with you to find a payment option with which you can live. One of those options could be setting up a plan so that taxes can be paid in installments. tip #3 Have a solid business plan that makes accommodations for both federal and state taxes, and stick to it. The last thing a new business needs is to lose its profits by paying penalties to the IRS. tip #4 Open a second bank account like a tax savings account, to be used exclusively for saving money for paying taxes. As a business coach, I’ve seen many clients successfully use this strategy. tip #5 Each time your write yourself a check or make a cash withdrawal from the ATM, take 20% of that money and deposit it into your tax savings account. For example, for every $100, set $20 aside for taxes. You will be pleasantly surprised how quickly your tax savings will add up! tip #6 Each quarter, January 15th, April 15th, June 15th and September 15th make estimated tax payments to the Federal and State governments. tip #7 Each October meet with your tax preparer for preliminary tax planning. You can evaluate where you are for the year and leave yourself ample time to reduce your tax liability or make additional payments. By using this proven bookkeeping business advice and implementing these seven tips into your business’s bookkeeping practices, you will be able to survive paying your taxes. Article by: Linda Hunt On your phone or tablet, Anytime, anywhere! ������������������������������������������������������������ Our business is about your business Find us in Dixieland! ���������������������������������������� ������������������������������������������������������ �������������������������������������� Family owned; Growing Relationships since 2009
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