Bob Gauvreau warns that missing sales tax, payroll, or corporate tax deadlines costs more in penalties than hiring a professional to file on time. Failure-to-file penalties can exceed the interest on unpaid taxes, so file even if you can't pay yet.
Ignoring tax deadlines is one of the worst strategies that you could possibly apply in your business. Businesses come in and work with us, and they've been missing their sales tax filing, they missed their payroll liabilities filing, they missed their corporate or personal tax filing. All this does is it incurs penalties related to those filings, and they can be quite substantial, including failure to file penalties or misrepresentation. You could be looking at getting yourself in a lot of trouble instead, even if you can't afford to pay the tax liability that's owing. We want to make sure that everything gets filed on time. We may owe interest related to not being able to pay that debt at the current time, but at least we're not incurring penalties for failure to file or missing any of those deadlines. Those penalties can end up being way more expensive than any professional fees that you would incur to get it done on time.
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