Let’s be honest, owning a small business is hard work! On any given day, it can be full of unexpected rewards and challenges, because there’s just so much to do and so little time. While being your own boss is great, it also comes with responsibilities you may not enjoy and could end up procrastinating. Like financial paperwork and filing your small business taxes. That’s why so many small business owners opt to file for an extension — to give themselves six more months to get their paperwork together.
In a typical tax year, the reasons for filing a business tax extension range from incomplete books to being too busy running the business to focus on getting taxes done in time. The 2020 tax year created another reason — confusion about the impact of COVID-relief aid and small business tax provisions from stimulus bills. Small business owner Carlos Davila is a prime example.
Carlos’ Miami-based business, Davila Law Firm, was unable to operate for more than three months during the first year of the pandemic. At the same time, his other company, PROSEC (a health care facilities security company based in Puerto Rico), was indirectly impacted when his Puerto Rico-based CPA was unable to complete paperwork on time due to pandemic-related policy changes, leaving Carlos waiting on an essential tax form. So, Carlos and his Block Advisors small business certified tax pro, Shrirang Talwalkar, came up with a plan to file for an extension.
“Shrirang’s team helped us manage the tax consequences, worked with our Puerto Rico-based CPA, and had meetings with us to make sense of it all,” said Carlos, who has trusted his small business taxes and financial tasks to Block Advisors for over a decade.
Filing Deadlines Are Around the Corner – But No Need to Panic
Unfortunately, additional time to file is almost over. Depending on your entity type and fiscal year set-up, the extension filing deadline is either Sept. 15 or Oct. 15. That means if you haven’t used the extra time to organize your books and collect all the necessary tax forms and paperwork, you might be feeling a little stressed right about now.
But there’s no need to panic. Regardless of where, or with whom, you filed your extension, Block Advisors small business certified tax pros can help you finish the filing process by the deadline.
“Let us do the heavy lifting so you can get back to doing what you love,” said Paul Ramos, director of small business tax for H&R Block. “In addition to small business tax expertise, we have the bookkeeping tools and services to help get your finances in order as well. As your small business partner, we’re always here to help.”
Carlos appreciates working with professionals at Block Advisors because it takes a weight off his shoulders and allows him to focus on what he loves — his businesses.
“The tax professionals at Block Advisors are competent, patient and genuinely care about our needs and concerns,” he said. “The ability to focus on what we do gives us the freedom to grow as a business and to take care of our clients.”
To learn more about small business tax filing and implications, or to start working with a Block Advisors small business certified tax pro, visit blockadvisors.com.