Life was skewed for more than a year during the pandemic. And, as everything slowly gets back to normal, now is a good time to take stock and move forward, especially if a refund is involved.
Extended Deadlines
In 2020, the deadline to file federal taxes was extended to mid-summer in response to the pandemic and its associated hardships. And, in 2021, the filing deadline was once again slightly extended to give Americans more time to file, changing from April 15 to May 17.
But, in addition to the altered filing date, many folks across the country have encountered new challenges with their taxes based on the unprecedented year that was 2020.
Many Americans received several stimulus payments in the past year. Many have encountered new tax situations that they had never encountered before, such as:
- Unemployment
- Suddenly working from home
- Seeing a loss in business income
2020 was challenging! No question about it. So, it’s understandable that tax situations were challenging as well for tax filers across the U.S.
And although the tax deadline for 2020 has come and gone, there are a few key changes and tips that business owners should keep in mind when it comes to filing in the future, as the pandemic dissipates and the world returns to normal.
Specialized Area
These changes and situations are present for all tax scenarios, especially when fuel excise tax recovery. This niche and specialized area of taxes has its own guidelines and frameworks that can be hard for everyday business owners or general accountants to tackle.
So, your best bet to understand the waves of recent changes is to contact an expert in this unique tax field, like the professionals at TIP. Because our sole focus is on fuel excise tax recovery, we can ensure that no stone is unturned when it comes to ensuring you get the biggest refund possible.
We are always available to answer your questions. We only need a little information from you to get started. But in the meantime, keep the following in mind in the months ahead as you enter life post-pandemic.
Essential Businesses
While some professions and businesses slowed to a halt during the Coronavirus pandemic, other businesses that were considered essential flourished and worked hard to keep the country running. This included:
- Grocery stores
- Food providers
- Outdoor recreation providers as all entertainment shifted to the outdoors
- Construction companies
- Shipping companies
- Businesses that made a living by providing the essentials: food, shelter, and a little much-needed entertainment
If this sounds like your business, you should definitely explore your options to fuel excise tax recovery. Chances are, with all your hard work during the past year, your refund is much larger than you’d think. It’s also possibly larger than previous years when life was simply business as usual.
Shuttered Businesses in 2020
Remember that most of the country did not fully shut down until March of 2020; things slowly started to open on a smaller basis beginning in the summer and fall.
So, even if your business was closed or running on a limited basis for the majority of the year, it’s very likely that you still have a refund due when it comes to fuel excise tax recovery.
Remember, there is no cost to you to explore your options. And, it never hurts to take stock and see if you are due extra refund monies that may have been left behind.
It’s Not Just 2020 That Counts
Another point to consider for businesses that may have been closed or functioning on a limited basis in 2020 is that if you’ve never filed for fuel tax recovery before, you don’t have to rely on your income or expenses from 2020 alone.
The first federal filing for fuel tax recovery can go back three years from the initial filing date, while the state filing can range between three months to three years, based on which state the filing is for.
So even if your 2020 was slow in your business, you can also include previous years in your fuel tax recovery efforts, which can ensure a much bigger refund.
It’s Never Too Early to Look Ahead
The filing date for 2021’s taxes may be months away. However, now is an optimal time to get started! You want to anticipate how your income and expenses will change as the world gradually returns to a more familiar version of normal.
When you work with Tip, we will need some preliminary info to get started on garnering your maximum refund, such as:
- A list of non-highway equipment
- In-service dates
- Reefer hours
- Fuel invoices
- Form number used for annual federal tax filings
- The month of the year your tax year ends
- Your federal I.D. number
Get a jump start on your taxes! Collect this information and keep a running tally of any changes as the year progresses. Perhaps in the months ahead, you’ll increase your equipment or make changes to your inventory.
Or maybe you’ll collect more and more fuel invoices as the year progresses. Keep these items safe and stored away for the future. You want them available when the next tax season rolls around because you’ll be ready to file with little effort.
We Are Here for You
Life has certainly changed in the past 12 months. But, now is an ideal time to look ahead. Try to find new opportunities to save money and boost your businesses’ income.
Reach out to the experts at Tip today to find out how to get started, and we’ll work together to ensure that 2021 is your most productive and successful year yet.