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Speed up corporate tax refund

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in Small Business Tax,Small Business Tax Deduction Strategies

Did your C corporation overpay its estimated tax in 2018 due to a slowdown in holiday sales or fluctuating income? You can recoup the overpayment even before you file the corporate tax return due on April 15, 2019. Alternatively, you might apply for the six-month extension.

Strategy: Request a fast refund from the IRS. All you have to do is file Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax.

The form and the accompanying instructions can be found at www.irs.gov/pub/irs-pdf/f4466.pdf.

How fast is “fast”? The IRS says your company will receive its refund no later than 45 days from the date you file a Form 4466 request, but it will probably come a lot sooner. You will likely receive it within a couple of weeks of filing Form 4466.

There are two key requirements:

1. The overpayment must be for at least 10% of the estimated 2018 tax liability.

2. The overpayment must be for at least $500.

Tip: You have until April 15 to make this election. But why wait and let Uncle Sam have the use of your money? You can file Form 4466 once the New Year has arrived.

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