IRS and State Tax Resources and Due Dates

Accounting: Lesson 12

Jennifer Phipps, owner of Phipps CPA, will be discussing communication with the IRS, state tax resources, and due dates.

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- IRS

The Internal Revenue Service, or IRS, will be the agency who collects federal taxes including income and payroll. To learn more about the IRS and its’ resources visit irs.gov only. There are many scam websites and even scam phone calls claiming to be IRS. Proper communication from the IRS will not begin with a cold call, but rather with a sent letter to you with a notice number that will allow you to really communicate with official IRS representatives. Once you have received a letter informing your business that compliance has not been met for federal income taxes, two ways of communication can occur, either written response or phone call to an IRS agent.

- State Tax Resources

NEXUS are the rules of the state letting businesses know if they should file state income, franchise, excise, payroll, or business taxes. If your business owes any of these taxes, the next step is to contact your State Department of Revenue. Contact will be made through their official website or official phone number in order to reach a helpful agent. Your tax advisor can also help you figure out if your business’ actions warrant the filing of state taxes.

Be sure to check your local authority’s website to find additional local taxes, within your jurisdiction, that you may owe. Local government offices can also be a resource to use when figuring out if local taxes apply to you.

- Due Dates

Depending on what type of filer and legal entity your business may be will determine the due date of either 2.5 or 3.5 months after the end of your calendar year. Special circumstance may affect this date significantly such as selling your business, acquiring another business, or a merger. Fiscal year filers may also have a different due date.

Due dates are in place not only for the filing of the tax return, but also for making the payments of your tax liability to the taxing authority. You are considered late if you did not make the due date for filing the tax return and making the payments of the taxes, unless you filed an extension before the due date. However, extensions only cover the filing of the tax return and an estimate of taxes due would still need to be paid before the due date.

Since there are many rules around due dates an authority on these matters such as an enrolled agent, tax preparation service, a CPA, or an attorney may be helpful.

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