• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Three ways to gain a faster corporate refund

by on
in Small Business Tax,Small Business Tax Deduction Strategies

Paying estimated tax in regular installments can be a tricky proposition, especially for corporations. But now that the dust has settled for the 2005 tax year, you may have run the numbers and found that your company overpaid its estimated taxes.

If that’s the case, here are three ways to effectively speed up your tax refund:

1. Ask the IRS to use the excess to cover payroll taxes. That way, you don’t have to wait to receive a refund from your tax filing. Caution: If you redesignate income tax payments, you could be liable for penalties if you subsequently end up owing income tax.

2. File for a refund before you file your return. This special option is available only to corporations that overpaid their income tax by at least $500.

3. Carry back a net operating loss (NOL). The loss can offset tax liability in the two previous years and provide an immediate refund. Alternatively, you can use the NOL in a future year if you expect profits to soar. Downside: If you take this approach, you must wait until you file your return for the profitable year to collect the tax benefit.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/7122/three-ways-to-gain-a-faster-corporate-refund "

Leave a Comment