Many states require companies to file yearly tangible property tax returns. Some of these require a filing fee, regardless of amount assessed. Common items that must be claimed include:
- Computer auxiliary equipment
- Coin-operated vending machines
- Coin-operated washers/dryers
These typically must be depreciated according to a depreciation method specified on the particular state form that you are filing.
Failure to file Tangible Property Tax Returns, as required by your local municipality, is a common accidental omittance. One reason why business owners fail to file Tangible Property Tax Returns:
Most owners have simply not heard of them and are unaware that such a tax filing even exists.
Such returns are frequently filed using obscure forms with unclear rules. Many business owners do not realize that their filing is late until they have received a letter in the mail assessing them for thousands of dollars.
In this situation, the county may have assessed the property at a much higher value than the Fair Market Value of the property. If this is the case, the appropriate course of action is to immediately file an amended return with the correct value of the property
In some cases, the business owner has heard of these returns, but has not prioritized this item as they may be unaware that they must file even if no property is claimed. This is common when the business involves little or no tangible property on the premises. Many counties and states require the return to be filed regardless of fair market value or lack of depreciable assets.
A common problem with Tangible Property Returns is that many CPA firms do not specialize in specific local ordinances and tax code. For this reason, finding a qualified CPA to fill out the documentation and communicate with the relevant authority may be difficult. Since the engagement way even require a limited power of attorney, CPA firms will use this as an opportunity to charge exorbitant fees to complete this sort of work.
The tax compliance team at George Dimov CPA can file these returns at a reasonable cost and fast turnaround. Contact us today for a checklist of the items that we need to prepare your return and let us take care of the paperwork so you can focus on your business.