“Local Tax Time”
Posted on 02.06.18
Note: This article was originally published on January 11, 2017 and has been updated for accuracy and comprehensiveness.
For many localities in the Richmond area, local tax filings are due March 1, 2018. If a business has not yet received its local tax returns, likely Business License (BPOL) and Business Tangible Personal Property or Machinery and Tools, we suggest you reach out to your locality. The fact that no form has been received does not relieve a business from its tax filing requirements and rarely is an acceptable excuse for failing to timely file. It may be that operations have moved and no update has been provided to the locality. Or, it may be that local taxes have never been filed and the locality has yet to find you. In either case, we may be able to help out.
In addition, as with most other taxes, there are potential tax savings opportunities with local taxes, depending upon the nature of the business, where it is doing business, where it has filed in the past, etc.
Often businesses do not devote very much attention to local tax filings such as BPOL (business license), business personal property/machinery and tools taxes, merchants' capital, etc.
Notices from localities generally arrive early in the year when many other tasks and issues (e.g., closing out the books for the old year, preparing for federal and state income tax reporting, preparing for audits, issuing W-2s and 1099s and any number of other issues) compete for time and attention. In addition, businesses may think there is little that can be done other than complete the local returns, write the checks and move on to the next item on the list. However, that is not necessarily the case...