You and Your Small Business Taxes During the Pandemic
In less than a month the entire world changed drastically. While we all come to grips with the new reality presented by the COVID-19 pandemic, the old phrase, “Nothing is certain except for death and taxes,” rings uncomfortably true. Thankfully we have a robust health care system and hard working leaders addressing both issues – but we still need to pay those taxes! This blog gives you an overview of what small businesses can expect from the 2020 tax season.
The Deadlines Have Been Extended
The due date to file individual taxes is now June 1, 2020, and the deadline to pay off your 2019 balance has been extended to September 1, 2020. This includes the self employed, or those with a self employed spouse (including common law). If your business is unincorporated, follow the individual filing deadlines.
A change for incorporated business is as follows as per Canada Revenue Agency (CRA), “The deadline for businesses to pay any income tax amounts that become owing or due after March 18, 2020 and before September 1, 2020 has been extended to September 1, 2020. This means you will not be assessed any penalties or interest if your balance due is paid by September 1, 2020.”
Charities and non-profit organizations receive a new filing deadline of December 31, 2020.
How to File
Understandably, CRA is under considerable strain as it enters both a very busy tax season and an unprecedented amount of applications for government-sponsored financial relief. During this time, take advantage of online filing and use My Account and/or My Business Account to keep track of the process, documents, communications, and more.
Rely on your CPA. With a constantly evolving situation and changing deadlines, your CPA is the best option for filing on time and filing correctly. Your tax situation becomes even more complicated if you or your business are requesting government aid. Again – a CPA helps you navigate the impact this has on your taxes and filing process.
Please be Patient
You likely have a lot of questions about your taxes with all the changes going on. CRA is experiencing very high call volumes and operating with fewer agents than normal. It may not be possible to reach an agent by phone. A statement on their website says, “At this time, we ask that you only stay on the line if your questions are related to the filing of your 2019 income tax and benefit return, your benefits, or are calling to set up a My Account. For all other questions, we ask that you please call back at a later time.”
If you have questions and are unable to reach CRA, talk to your CPA. Accountants have access to the information you need to know about your 2019 filing, and other taxing questions you may have.
Let AF Accounting Help
AF Accounting is here to help you through the current tax season, and to help your small business thrive year round. We offer a variety of services, including specialized products for e-commerce sellers. Contact us today to learn more.