Business Tax Returns Filing in Denver: Types of Business Tax Returns, Business Taxes


Setting up a business in Denver and comprehending the difficulties of filing taxes are critical aspects of running a business, and that’s when accounting tax services in Denver play their role.

What is a business tax return?

A business tax return is essentially a personal income tax return and one of the major tax services in Denver. The return is a statement of the company’s profits and expenses. In addition, any tax due on your profits is stated in this return. The return also includes information about the company’s assets and liabilities. Fixed assets, business debtors and creditors, loans taken, and loans given are declared here.

Who has to file a business tax return?

  • The filing of returns is primarily determined by the type of business structure as per the experts provided by Denver Tax services. As an example:
  • If you are a sole owner, your business and other personal income, such as salary, rental, and interest, must be reported on the same form.
  • If your total income before deductions exceeds the basic taxable limit, you must file your income tax return regardless of profit or loss in your firm.
  • The taxable base. If your income before deductions exceeds, you must file a business tax return.
  • Regardless of profit or loss, corporations, organizations, and Limited Liability Partnerships (LLP) must file a business tax return. Even if no operations are performed, a return must be filed.
  • Companies and LLPs are subject to a 30% tax.

Income Tax Audit

Every taxpayer with a turnover of more than In the case of enterprises and In the case of professions is required to undergo a tax audit. The taxpayer must appoint a CPA from accounting tax services Denver to audit their accounts.

A tax audit is done by a tax accountant in Denver Colorado and is also required if your business has suffered a loss and you want to carry the loss forward. A tax audit is required even if your claimed profits are less than 8% (6% on digital transactions) of the turnover in the case of a business and 50% of revenues in the case of professional tax services in Denver.

Presumptive Taxation

Individuals, HUFs, and firms operating enterprises or providing Denver tax services can presumptively present their income to tax. The threshold for presumptive taxation for businesses, while for professionals.

For firms, a minimum of 8% of turnover must be supplied as revenue on a presumptive basis. Professionals must declare 50% of professional receipts on their business tax returns.

What are the due dates for filing returns?

According to the tax accountants in Denver Colorado,

  • Individuals not subject to tax audit must file their returns by August 31st, following the end of the fiscal year (Belated returns can be filed up to March 31st, subject to penalty).
  • Individuals subject to tax audits and all other assessments, such as companies, LLPs, and partnership firms, have until September 30th, after the end of the fiscal year, to file their returns. This deadline has been moved from September 30th, 2018, to October 31st, 2018, for the financial year 2017-18. The penalty for failure to file returns- Any loss accrued during the year cannot be carried forward if the return is filed after the due date for filing income tax returns. A fine can also be imposed on the assessee under Section 271F.

Does your business in Denver need tax preparation services?

You may believe that preparing and filing your tax returns is simple. However, you may be passing up opportunities. By hiring professional Denver tax services to prepare their tax returns, small business owners can save time, money, and potential legal complications.

Owners of small businesses wear numerous hats. You might not have a full-time or part-time accountant or bookkeeper to assist you with record keeping and paying local, state, and federal taxes. Your level of experience and understanding of tax law needs can range from none to comprehensive.

You may believe that preparing and completing your tax returns manually or via tax filing software is simple. However, tax compliance is not something to be done lightly, and you may want to consult accounting tax services in Denver. Hiring a professional tax accountant in Denver Colorado makes sense in a variety of situations.

Lastly,

Self-preparation of business tax returns can take time, patience, and attention to detail. Almost every business transaction has a tax rectification, and odd transactions might raise red flags on tax returns if not handled correctly. Engaging professional and qualified accounting tax services in Denver for tax preparation can save short business owners time, money, and even legal concerns.

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