Settle Tax Arrears with Accounts Receivables Factoring

If you're a small business owner and you found out that you need to pay taxes this year, but are low on the cash to settle your arrears, you might be able to use receivables factoring to cover your tax debt. With this type of financial solution, you'll have the peace of mind conscious that you can avoid large tax debts and late filing punishment charges.

Small business owners can take heed of these insightful tax hints.

Maintain funds separate - Sole owners take heed... even though all of the funds that come into your small business are yours, it's a wonderful technique to maintain the money separate from your own expenses. This will prove to be very effective come tax filing time - it is easier to track your expenses.

Keep a separate business telephone, even your mobile phone, because it makes it simpler to compute telephone expenses when your taxes are due.

Also, be aware that expenses for your domain name, internet site hosting, promoting, office supplies as well as business cards are tax deductible. What's more, 50% of your business-related food and amusement expenses can also be included in your tax reports.

Utilize your debit card or checks to cover expenses from your business account. Avoid withdrawing cash. Payments paid to retirement plans can also be claimed. The same goes for your health insurance expenses.

Regarding vehicle expenses -- petrol and parking costs, oil, tolls and even insurance -- can be subtracted rather than your mileage. You have the freedom to make the actual expense deduction or the standard mileage deduction; but in either case, parking cost is always deductible. You can even go more techie - make use of a mapping website such as Mapquest.com to calculate your business-related mileage.

And if you have a home office, you can deduct that percentage of space and a percentage of home expenses, including utilities.

Don't forget, popularly used as a way to provide peace of mind, you can sell credit-worthy invoices to an accounts receivables factoring company who can help you acquire additional funding for fast working capital to settle taxes.

When it is time to file, e-filing is fast, precise and convenient. Numerous tax preparation programs come with commands that are able to mechanically check for inaccuracies. This steps up the accuracy of the tax return, and the demand for contact with the IRS to iron out errors.

A taxpayer usually files a state tax return at the same time they electronically file their federal return. Once the return is accepted for processing, the IRS electronically recognizes receipt of the return. If you file electronically, your refund will be issued in about half the time it would take compared to filing a return by paper or mail.

When it comes to your IRS and tax inquiries, check the small business and Self-Employed Tax Center at www.irs.gov. For more information regarding invoice or receivables factoring, contact The Interface Financial Group (IFG) at 877.210.9748.