Most people think that filing their annual income tax return is not important. However, in most states, the consequences of not filing the annual income tax return are not light. Those with simple income may find it easy to file their income tax returns but people with multiple incomes need a more professional approach. Check what Wynkoop & Associates Tax Preparation offers if you are such a person. With them, your income tax problems are in safe hand. This article highlights the top reasons to file your income tax returns in time.
Reasons to file tax returns in time
Avoid late filing penalties
As the simplest penalty, filing your income tax return after the deadline dates draw a penalty. The penalty which is informed of some amount per time passing or a percentage keeps accruing as time passes so, the more you delay, the higher the penalty. Well, there are very few reasons for lateness, and if they are genuine, the tax man will understand only after a prior agreement. Complying is far simpler than following up to have the penalties waived. Which may not happen anyway?
It is mandatory in some cases
Most countries require all people with an income tax to file their annual income tax returns at the end of every year. In such a case, then failure to do so can draw a legal charge aginst the defaulter. Such an issue is therefore protected by the constitution of the state. Apart from being a legal contravene, some transaction like property registration may require past records of income tax return filing as part of the procedure. Therefore one must ensure they file the returns in time and if it is a hassle, then you can use an agent.
To safeguard loan probabilities
Some loan facilities may need to see how well a person complies with the issue of income tax return filing. Failure to comply will then draw questions of loan eligibility if it is a requirement. It shows how serious you are with finance issues. Again the loan company may doubt your credit worthiness in the long run. Therefore, it is important to comply with this simple procedure.
Help to claim various issues
Sometimes losses can occur during the income tax procedure and a subsequent refund procedure. People who file their income tax returns late or never did at the first place may find it difficult to get assistance on such issues. The taxman uses the income tax files as a prove of acknowledgment for correct taxing.…
The new tax incentives have made working and residing in Puerto Rico more appealing despite the discouraging history of this nation economically. Puerto Rico Act 20 Tax Incentives justify why investors are relocating to establish their businesses in this island. Besides incentives, this act also offers tax exemptions to firms that meet the set requirements.
ACT 20 Explained
Often called “Export Services Act” this law was meant to improve the exportation of services by offering significant resources as well as prospects for companies in the United States to relocate to Puerto Rico. This was done with the objective of reversing the adverse economic trends facing this island. It also stimulates the growth of academic and non-public sectors to buy research and incentives to businesspersons investing in the major sectors of the economy.
To qualify for exemptions, any business has to submit an application for a tax concession through decree (a tax exemption) to the Industrial Tax Exemption office The order is offered for twenty years with a possibility of 10-year extension, no matter the adjustments in the law. To qualify, the company or business should not have had any previous dealings, connections or nexus.
Act 20 was recently amended to accommodate new business trying that had not complied with the first legislation. This law requires that the company should have at least five (5) (FTE) full-time employees at the time of the grant. Besides, the business is also expected to comply not later than six moths after starting its operations.
Full-time employees are employees who work 2,080 hours annually, including paid-time-off. Five full-time employees or FTE equal 10,400 hours. If the company has part-time employees, for the employee should be included in the requirement. A person must work for at least 1,040 hours.
Nonetheless, the company should work for least 10,400 hours should the company or business have a combination of FTE and part-time employees. In a nutshell, an equivalent of 5 full-time employees must always be satisfied, and no any employee should work for more than 50% of this time,
Fees and Annual Reports
The application fee for this tax incentive is $750.00 USD. As soon as the tax decree is granted to the company, the company can start enjoying this incentive. However, annual reports need to be filed 30 days after filing the PR Corporate Income Tax Return.
Tax Exemption Decree
To enjoy the tax incentives that are offered under the Export Services Act, the provider of the services must request and get a tax exemption decree that is under this law.…