It’s time once again for tax season. Each year, state and federal codes are updated, ushering in new rules for businesses of all sizes. Prepare for your meeting with your CPA (or prepare for going it alone) by keeping the following tips and rules in mind.
You May Have Extra Time to File
This year, the State of Illinois has extended the deadline for some small businesses filing taxes. According to the Illinois Department of Revenue, “Calendar year C corporations will receive an extra month to file their return and pay their tax. The original filing and payment due date will change from March 15, 2017 to April 18, 2017.” Other forms of business, including not-for-profit organizations, may also have extended deadlines. Be sure to double check with your tax professional.
Don’t Forget Your Supporting Documents
For Illinois retailers deducting some of their sales, it’s important to submit receipts of all of these transactions. The Department of Revenue states, “Taxpayers claiming deductions either on the return or by elimination need to maintain the documentation to support the deductions and have available during the audit process.” Not including proper documentation could cause your business to end up paying back some of these deductions.
Report Awarded Tax Credits
In order to stimulate the economic recovery, the state has implemented a number of tax credits for which your business may be eligible. However, if you’ve been awarded a tax credit, it is your responsibility to include the information on your returns. Be aware, that you might not receive cash for these credits. According to the Illinois Department of Revenue, “A certificate will be issued to you by DCEO when your credit is approved. If DCEO approves you for the Illinois Small Business Job Creation Tax Credit, DCEO will issue you a Tax Credit Certificate.” This credit may then be applied to other taxes owed by your business.
Check for Projects Within The High Impact Zone
For construction firms and related businesses required to purchase building materials, a tax exemption may be available if your project falls in certain areas. Be sure to double check which of your projects was completed in a “High Impact Zone” to see whether or not you qualify for the Building Materials Tax Exemption. If your business has qualified for this exemption, be sure to report it with your return.
Staying on top of tax guidelines can decrease your business’ chances for being audited. If you aren’t sure whether or not something on your return is in compliance it may be beneficial to meet with a tax attorney or a CPA prior to filing.
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