In the Virgin Islands, small business owners aren’t well-versed in tax laws. For this reason, the owners turn to consultants for help. The most recent tax laws define what deductions are available and how the business owner benefits from them. A local consultant offers assistance for small business owners who need help with their taxes.
Reviewing the Previous Year’s Tax Requirements
An evaluation of the previous year’s tax requirements provides a base value for the company. The value is used to determine an approximate percentage to cover tax requirements in the upcoming year. A consultant recommends that the business sets up a separate savings account for managing these requirements. It is a beneficial way to save for tax season without spending the funds accidentally.
Identifying Deductibles that Weren’t Used Previously
An assessment of the previous year’s tax return determines if the owner used all available deductions. If the company’s expenses weren’t reported properly, the owner didn’t receive the full benefits of the deductions. The consultant reviews all expenses and determines what receipts and invoices the owner needs when filing their taxes in the upcoming year.
Setting Up Quarterly Payments
The consultant shows the small business owner how to set up quarterly tax payments. The contributions for the new savings account are deducted according to the current quarter’s tax requirements. The company owner sets up the payment with the right vouchers and sends it to the IRS. Any value beyond the current quarterly tax requirements remain in the account and generates more interest.
Maximizing the Tax Refund When Possible
The company owner maximizes their tax return by using all available deductions first. Next, the company contributes a percentage of their profits to charities and transfers a portion of profits into trusts. A consultant explains all measures that lower the company’s overall earnings for the year. The strategy reduces the tax implications and increases the tax refund for the owner.
In the Virgin Islands, small business owners who manage their own tax implications aren’t receiving their maximum refund. Overlooked deductions could generate a higher savings for the owner. A new savings account helps the owner save for upcoming tax payments. Business owners who need help with quarterly payments contact Cane Bay Partners now.