Frequently Asked Questions about Taxes
Answers to common questions regarding taxes for individuals and businesses.
What types of taxes do businesses need to pay?
Common business taxes include:
Income tax (federal, and often state/local)
Self-employment tax (for sole proprietors and partnerships)
Payroll tax (if you have employees)
Sales tax (if you sell taxable goods or services)
Excise tax (for specific industries, like fuel or alcohol)
Franchise or business privilege tax (in some states)
When are business taxes due?
Quarterly estimated taxes: Due April 15, June 15, Sept 15, Jan 15
Annual returns: Typically due March 15 (S Corps/Partnerships) or April 15 (C Corps/Sole Proprietors)
Deadlines may vary depending on your business structure and location.
How do I know which taxes apply to my business?
It depends on your entity type, location, industry, and revenue. A tax professional can help ensure you meet all local, state, and federal obligations.
Do I have to pay quarterly estimated taxes?
Yes, if you expect to owe $1,000 or more in taxes for the year. This includes most sole proprietors, partnerships, and S corps. Use Form 1040-ES or IRS tools to calculate your payment.
Can I deduct home office expenses?
If you use part of your home exclusively and regularly for business, you may deduct a portion of expenses like rent, utilities, and insurance. The IRS offers a simplified method and a detailed calculation.
What business expenses are tax-deductible?
Common deductible expenses include:
Office supplies and equipment
Software subscriptions
Travel and meals (partial)
Marketing and advertising
Contractor payments
Rent and utilities
Professional services (legal, accounting, etc.)
How should I keep tax records?
Keep digital or physical copies of receipts, invoices, bank statements, and tax filings for at least 3–7 years, depending on your situation. Good bookkeeping makes tax prep much easier.
Do I need to file taxes if I haven’t made a profit yet?
Yes. Even pre-revenue startups often need to file returns and may be eligible for deductions or credits. Filing also keeps your business in good standing with tax authorities.
Can I deduct startup costs?
Yes. You can deduct up to $5,000 in startup expenses and $5,000 in organizational costs in your first year, with the remainder amortized over 15 years.
Are R&D tax credits available to startups?
Yes. The Research & Development (R&D) Tax Credit can offset payroll taxes for qualified startups engaged in product or technology development.
How do I manage multi-state tax compliance?
If you operate in more than one state, you may be subject to nexus rules, requiring you to collect sales tax or file income tax returns in those states. A tax advisor can help you stay compliant.
Do I need a tax professional or CPA?
Yes, especially as your business grows. Tax professionals provide strategic guidance, help minimize liability, and ensure compliance with complex and changing tax laws.
What happens if I get audited?
If you’re audited, you’ll need to provide documentation supporting your income and deductions. A tax professional can represent you before the IRS or state tax agency and help you navigate the process.
How can I avoid tax penalties?
File on time—even if you can’t pay
Pay estimated taxes quarterly
Keep clean, organized records
Work with a tax professional
Stay aware of state-specific requirements
What can go horribly wrong with DIY personal tax filing?
DIY tax software can miss deductions, miscalculate complex items (like capital gains or self-employment taxes), and overlook compliance with changing tax laws. Even simple errors can lead to IRS audits, delayed refunds, or costly penalties.
What penalties do businesses face for payroll or tax errors?
Businesses can face steep penalties for late payments, incorrect filings, misclassified employees, or underreporting income. The IRS and state agencies may impose fines, interest, or even criminal charges in severe cases—especially for unpaid payroll taxes.
How quickly can poor corporate tax practices threaten my business?
Very quickly. Inconsistent or inaccurate tax practices can lead to cash flow issues, audit exposure, loss of investor or lender trust, and potential legal consequences. Proactive planning and proper oversight protect your financial health and business reputation.
What are the easiest ways to pay my IRS taxes online?
IRS Direct Pay (Free): Pay from a bank account with no fees and instant confirmation. No registration required.
IRS Online Account: View your balance, notices, and pay via bank account, card, or digital wallet.
Debit/Credit Card or Digital Wallet: Fast and convenient, but processing fees apply.
Are there other payment options available?
- EFTPS (for businesses or large payments): Requires enrollment (1–2 weeks), but allows scheduling up to a year in advance.
- Mail a Check or Money Order: Payable to U.S. Treasury. Include your details and mail to the address on your IRS notice or form instructions.
What should I do before making a payment?
File your return or extension (Form 4868) by April 15, even if you can’t pay in full.
Pay what you can to reduce penalties and interest.
Keep confirmation numbers and bank records as proof of payment.
How do i check the status of my refund?
If your return has already been filed and accepted, the best way to track your refund is through the IRS “Where’s My Refund” tool:
https://www.irs.gov/refunds
or
https://sa.www4.irs.gov/wmr/
To use this tool, you’ll need the following information:
Your Social Security Number (or ITIN)
Your filing status (e.g., Single, Married Filing Jointly)
The exact refund amount shown on your tax return
Please note that during peak times or if your return requires additional review, the IRS may take several weeks to process and issue your refund.
If you believe there’s a delay or you need assistance reviewing the return we filed, feel free to call our office at 817.562.5375.
What if i need to file a tax extension?
We are pleased to assist by filing a federal tax extension on your behalf. To secure this service, we require a $175 extension fee, payable now and fully credited toward your final invoice. This advance payment enables us to prioritize our time and resources for clients committed to completing their returns in partnership with us.
Please submit payment here:
https://parr-cpa-bi-pc.myhelcim.com/hosted/login.php?token=e43a09052ff3c498af1221&&amount=175.00&amountHash=ba5a6193f0993e13b0fde4121354e30556caa12856b11f390750c79a83583cfb
To help ensure we get your tax return completed timely, we’ll send you an automatic reminder every week until we receive all required tax documents. If you’d prefer monthly reminders, just let our admin team know by responding to this email.
Next Steps:
You submit the $175 payment.
We file IRS Form 4868 (automatic 6‑month extension)
Weekly document reminders begin.
The $175 is applied as a credit to your final invoice.
If you have any questions, call our office at 817.562.5375.
From preparation to planning, our tax services are designed to simplify compliance, minimize liabilities, and support your business growth year-round.
