How to file your income taxes
Preparation is the key.
By: Kendrick Go | Mar 08, 2012 13:00 pm
They say that there are two things man cannot avoid death and taxes. This expression sums up the usual attitudes of entrepreneurs towads the topic of taxation. The filing of taxes can be very complicated with different forms to fill out and file. However, according to Grace Perez managing partner of Calabig Dy Perez Yao & Company filing taxes need not be too hard all that you need to do is to keep your papers in order and to follow certain guidelines.
[related|post]Perez says that businesses need to file the ITR four times a year every quarter. To make filing easier she recommends that entrepreneurs to have complete background data of their tax records and that of their spouse if filing jointly. Also one must bear in mind that there are tax deductions and supporting documents that need to be prepared. Finlly they must have complete and accurate tax records like books of accounts, monthly tax returns, summary of revenues or income, summary of expenses, financial statements.
The first step to filing income taxes is to obtain updated income tax forms the guidelines at the back can serve as a valuable reference to help you file. Next you must prepare and organize your tax records and ensure everything is complete and in order. Next you need to obtain all the necessary third party documents. Prepare your financial statements have them certified by an independent certified public accountant if the gross quarterly sales, earnings, or receipts exceed P150, 000.
When you are ready to fill up the ITR forms, have on hand your complete background information and that of your spouse if you are filing jointly, including that of your qualified dependent children. Then you select the tax deductions that you will use whether itemized deduction or optional standard deduction then fill out triplicate copies of the ITR. Then attach and check your supporting documents and check your math to make sure you didn’t add or subtract anything.
Afterwards, just sign and date your forms then file and pay your tax due with any authorized agent bank located within the territorial jurisdiction of the Revenue District Office where your business was registered. After paying don’t forget your copy of the ITR and payment receipt.