How to file a tax return for an individual entrepreneur: problems and solutions

Each individual entrepreneur has an obligation to submit reports and pay taxes. Difficulties often arise with filling out a tax return and calculating payments.

A declaration is a document in which business profit is indicated.

A tax return is a mandatory document by which all entrepreneurs in our country are accountable to the state. The tax authorities monitor the profitability of taxpayers' activities and payments to the state budget corresponding to income.

Kinds

The tax return comes in several forms. What kind of tax return does the individual entrepreneur submit?

Selecting a specific type of reporting document is directly dependent on two factors:

• type of business activity;
• the applied taxation system.

Each taxation system has its own form of report and its own terms. The declaration can be submitted quarterly or at the end of the year.

For individual entrepreneurs on the simplified tax system, it is required to fill out a tax return paid in connection with the application of the simplified taxation system.

It is known 3 types of reporting documents.

Full

A full declaration is a reporting a document that provides complete data on all income received from the implementation of entrepreneurial activities.

There are taxes that are obligatory for everyone, and there are those that must be paid as a result of certain actions performed in the course of business. A reporting form is also filled out for them.

Refined

The revised declaration is a reporting document that makes adjustments to the full declaration.

Issued:

• at the request of the tax authorities, if inaccuracies were found in the completed document. In this case the tax authority will impose a fine on the entrepreneur.
• on the initiative of the entrepreneur, to clarify if the information in the full declaration turned out to be incorrect. Since the legislation in our country often changes the filling requirements, errors can be made as a result.

A "clarification" is submitted in the same way as the primary declaration, its main difference will be the stamp on the front side of the form.

There is also no strictly defined deadline in which a revised declaration must be submitted. But it is better to draw up a cover letter for it, where all the inaccuracies in the primary document will be detailed.

In what cases this type of declaration should be submitted, see the video:

Zero

Certain types of reporting are not provided for by law at all, but they must be properly drawn up and submitted to the tax authorities. Here we are talking about a zero declaration.

There are no indications anywhere about the correct execution of such a document. But many entrepreneurs use it frequently.

A zero declaration is filed in the event that an individual entrepreneur did not work during the reporting period. Unfortunately, there is no such possibility for imputed tax payers.

The final

With a complete cessation of its activities the taxpayer is required to submit the final return.

If this is not done, the tax authorities will not accept the application to close the IP.

When do you need to take and how to fill it out?

A report on the simplified taxation system by individual entrepreneurs is submitted at the end of the year until April 30 or until the next day of the working week, if the deadline falls on a holiday or weekend.

Filling out the document for submission to the tax service can be carried out by the entrepreneur independently or by third parties by power of attorney. The most important thing when filling out is to provide reliable data.

With a simplified taxation system

At self-filling of the reporting document, errors and shortcomings are not excluded. This happens especially often if the entrepreneur is without experience.

Therefore, it is beneficial in this situation turn to professionals, who will carry out high-quality entry of information into the declaration and submit it within the prescribed period to the tax authorities. The entrepreneur will only be required to provide information about his income.

But it is important for an entrepreneur to understand that third-party accounting firms do not submit reports free of charge. In this regard, another cost item will appear.

It is better to clarify in advance in such an organization their capabilities and specialization. Perhaps they only deal with a certain type of tax return.

In this case, the entrepreneur may violate the established deadlines and fail to submit reports on time, which will entail penalties.

Now you can also draw up a reporting document using specialized service on the Internet:

• For example, you can use service "My business" with a user-friendly interface with which you can calculate fixed contributions, taxes under the simplified taxation system and a single tax on imputed income.

  In addition to reporting to the tax authorities, it is possible to file reports to the pension fund and the social insurance fund.

• Another interesting internet service "Kontur Elba", with the help of which the declaration is filled in and submitted to the tax service completely free of charge for the entrepreneur.

  This opportunity is available for a new enterprise during the first year of operation. The filling is simple and straightforward, it does not take much time.

This option is very convenient because you do not need to go anywhere, you can fill out and send the declaration without leaving your office or home. In terms of cost, it will be cheaper than contacting an accounting firm.

With a common taxation system

It happens that the activity is serious, which does not fit under the STS and UTII, then the taxation system will be chosen as a common one. Filling out the declaration and calculating tax payments on your own through Internet services can be difficult.

If an entrepreneur doubts himself and is afraid of making mistakes, then he can hire a qualified accountant who will be responsible for preparing reports.

It is important to draw up a power of attorney for him, certified by a notary. If the power of attorney is not drawn up or not certified, then when the accounting document is submitted by the accountant, the admission may be refused.

An entrepreneur who has decided to fill out the declaration on his own will need a special form. You can find it on the Internet or purchase it from firms that handle paperwork for individual entrepreneurs.

Also on the network there is information on the correct filling of the declaration, a kind of step-by-step instructions. If you follow it clearly, then you can successfully draw up reports and calculate the amount of payments without resorting to the help of accounting services.

How to send?

An entrepreneur can submit a tax return in the following ways:

• By personally contacting the tax office... If the reporting is submitted in person, the specialist puts a mark of acceptance. This form with a mark is best kept. It may happen that you have to prove to the tax authorities the timely submission of the reporting document.
• By mail... In this case, you need to draw up an inventory of the attachment in two copies and ask the postal worker for a check, which states the date the letter was sent. It is this number that will be considered the date of filing the tax return.
• Through the Internet.

Each of these methods has its own advantages and disadvantages. The choice is up to the entrepreneur. It is important to assess all risks before making any decision.

An individual entrepreneur must submit reports in accordance with the deadlines established by law. Often, due to absent-mindedness or forgetfulness, this process is delayed, which is a gross violation and is punishable by fines.

The following factors influence the amount of the fine:

• type of taxation system;
• the amount of tax payable during this period;
• number of days of delay.

In addition to penalties there is a possibility of seizure of the current account and blacklisting an irresponsible entrepreneur, after which his activities will be subject to regular checks by the tax authorities.

That is why it is better to approach tax reporting with all responsibility so as not to create unnecessary problems for yourself in the process of your main activity. If you attract the close attention of tax services, then this can only worsen the state of all affairs of the entrepreneur.

Grounds for refusal to admit

In some cases, the tax office has compelling grounds for not accepting reporting from an individual entrepreneur.

These reasons include:

• delivery of a reporting document without presenting a passport;
• failure to comply with the established form of the reporting document;
• absence on paper of the signature of the person who is responsible for providing reliable information;
• the absence of an enhanced qualification electronic signature of the head or his representative, or inaccuracy of data on the owner of the qualification certificate when submitting a declaration in electronic form;
• submission of a reporting document to the wrong tax authority. Before filing, it is necessary to clarify where to send, which body is competent to receive this particular type of reporting.

Refusal to accept the declaration is equivalent to failure to submit it within the established reporting period, which will be considered a tax offense for which the individual entrepreneur is liable before the law.

Thus, an individual entrepreneur should approach the preparation of a tax return with full responsibility.

It is important to use the established form of the reporting document and take into account the requirements of the tax authorities, as well as submit reports on time. Then there will be no problem.