Dispatch #22 - File Your Taxes, Don’t Wait
Even though certain income tax filing and payment deadlines have been extended until July 15th, don’t wait until then to file your corporate and personal tax returns.
This article by CPA firm Sensiba San Filippo states several good reasons to file:
If you’re due a refund, the sooner you file the sooner you’ll receive your refund;
Not all deadlines have been extended until July 15th;
The tax planning landscape has changed; it’s worth a quick check-in with your CPA;
Your CPA's capacity: for your sake and theirs, don’t get jammed up against the July 15th deadline.
A few other thoughts:
Check this off your list: in Q2 and Q3 your firm’s leadership team needs to be 100% focused on the company’s re-emergence;
CPA-prepared financial statements often coincide with tax prep; you might need those plus the tax returns to navigate loan and bonding instruments;
You can still conserve cash by deferring your company’s 2019 401k contributions: finalize the returns and then a week or two before the deadline, remit the contribution and ask your CPA to “push the button” and file the returns.
Filing your taxes now is a small but excellent example of maintaining an internal locus of control. A quote from one of my earlier blog post:
If you follow an external locus of control in your business, you believe that outside forces—the economy, labor shortage, customers, suppliers, material failures, the bank’s underwriters, etc.—drive and dictate your company’s success. An internal locus of control places more of the responsibility on you and your leadership team.
Need help with this or other financial matters faced by construction contractors? Let’s talk!
David Stern CFO makes every effort to provide useful and accurate information. This content, however, is not intended as a substitute for specific business-related financial advice. We disclaim all warranties and liabilities from its use.