Taycor Financial Takes On Tax Time

Taycor Financial Equipment Leasing Tax AdvantagesIt’s that time of year again where the rain starts to fade, flowers begin to bloom, and taxes are due. As an equipment leasing company, Taycor Financial works with businesses and prospective customers who have tons of questions every day regarding their tax returns and how it affects their transaction. With the tax deadline coming up on Monday, Taycor took the time to consider some of the most frequently asked questions regarding taxes and provide answers to help ease taxpayers’ minds.

“I need more time! Can I get an extension?”

Yes, you can file for an extension. All you need is to fill out the IRS form 4868 and you can do it online. Doing this gives you until October 15th to file your taxes, however this is only an extension to send in your paperwork. If you think that you might owe money then you’ll need to approximate the amount and send it in by April 15th. At least 90% of your estimated tax liability has to be paid by that time and overestimating is always better than underestimating. If the IRS does not get paid what you owe them by April 15th then you will receive a .05% per month late-payment penalty on your outstanding tax bill. If you are getting a refund however, you do not need to worry. Also, if you do not file your paperwork by October 15th then you will receive a failure-to-pay penalty which is 5% per month of any taxes you owe.

“What do I do if I don’t have enough money to pay everything right now?”

One thing you should never do if finances are too tight is wait and do nothing. It is much better to reach out to the IRS and communicate your financial struggles rather than waiting for them to contact you for a default payment.

One option is a short term extension. You get 120 days and you’ll have to pay the late payment penalty plus interest. However if you need more time you can start an installment plan. If you owe less than $50,000 then you can do this online and you pay the same interest and penalty rates as people who get a short-term extension. There’s a one-time fee of $105 to set up the installment and a $52 fee if you choose to setup automatic debit from your account each month.

Another option is to pay with a credit card, however the interest on your credit card is significantly higher than what the IRS charges under a payment plan. There is also a fee charged by the companies the IRS uses to process credit card payments.

If none of these options work for you and you’re really struggling financially, then call the IRS and explain your situation. They are willing to work with you as long as you communicate with them.

“I’m a bit disorganized and didn’t keep track of my deductible purchases last year. What should I do?”

The IRS has tools to help give you an estimate, however you might be better off trying to reconstruct the spending that would qualify for tax breaks especially if you made big-ticket purchases. Rummage through files and track down any receipts, credit card statements, and bank statements you can find.

“It’s been at least a couple years since I last filed taxes. Is it impossible to catch up?”

If you didn’t file taxes are due a refund, you have a three-year statute of limitations to claim it. However, if you haven’t done taxes and owe money, it’s a bit different. The IRS can go back three years, but they can look back at what you made and what you should have been paying for six years if you underreported your income by 25% or more.

First, start with this year’s taxes and pay anything you owe. Then you can go back however many years and start with the first year you didn’t pay and work forward. If it’s been more than a couple years and you’re having trouble organizing everything, you might want to seek help from a tax professional to help you sort through your records.

“What should I do if I’m missing important documents required for filing taxes?”

First, try contacting the organization that issued you the form. Many forms can also be found online. If you are unable to get the document you need then the IRS form 4852 allows you to fill out to the best of your knowledge what’s on the missing document. If you cannot recall the information, then pay what you know you owe and file for an extension until you can get another copy of the missing document.

“Is it too late to include something I forgot if I already filed?”

You have up to three years to amend your tax return. The form you use is the 1040X. Amended returns take longer to process because the IRS looks at them more closely so expect to wait at least 6 weeks.

About Taycor Financial

Taycor Financial, a nationwide equipment leasing and financing company headquartered in Los Angeles, has built a reputation of innovation by proactively seeking out new approaches in value added partnership with equipment vendors in the medical, printing, packaging, industrial and manufacturing industries. The customer finance center was developed through the partnership with www.equipmentleasing.org and its member network.