One of the main reasons why small business owners may be hesitant to file their tax returns is because they are unsure of what mistakes to avoid.
To help ease some of that anxiety, here are some of the most common errors made by small business owners: Aron Govil
Not Reporting All Income –
This is probably one of the biggest mistakes that small business owners make. Not reporting all income can lead to penalties and interest charges from the IRS. It’s important to keep track of all income, no matter how small it may seem.
Not Claiming All Expenses –
Another mistake that small business owners often make is not claiming all of their expenses. This can lead to lost deductions and increased taxes owed. It’s important to record all expenses, even if they seem like they may not be deductible.
Not Filing on Time –
One of the biggest reasons for penalties from the IRS is because taxpayers do not file their returns on time. If you are expecting a refund, it’s important to file as soon as possible. If you owe taxes, you should still file your return on time to avoid any penalties.
Not Using a Tax Professional –
Finally, one of the best ways to avoid making mistakes on your tax return is to use a professional tax preparer. They can help ensure that everything is filed correctly and that you take advantage of all available deductions and credits.
Avoiding these common mistakes can help ensure that your tax return is filed correctly and that you don’t run into any problems with the IRS. If you need assistance filing your tax return, be sure to contact a tax professional.
Tax season can be a daunting time for small business owners, but by avoiding some of the most common mistakes, you can make the process a little bit easier. Make sure to report all income, claim all expenses, file on time, and use a professional tax preparer to avoid any headaches.
This article was written by efile MYtaxes, an online tax preparation service dedicated to making the tax filing process as easy as possible.
They are very helpful, thanks! We always try to keep on top of tax law changes. Whenever there’s a new one it gets integrated into our system for the current year as well as the next year’s models. A lot of companies don’t do that. They just use last year’s version and update annually. Very frustrating! Reply Delete
I think I came across your site by mistake when I was searching yahoo for this info, but now that I have visited it is very good. Attribution links are relevant. It is not the only reason, but it is an important one…credit goes to you for posting something worthwhile here… Keep up the great work!!! Local search optimization Philadelphia.
Small business owners have a lot on their plate and tax season can be especially daunting. Avoiding these common mistakes, however,
- There are a few common mistakes that small business owners make when filling out their tax returns. The most common error is not keeping track of all of their expenses throughout the year. This can lead to an underestimation of how much income was actually earned, which can result in a higher tax bill.
- Another mistake that small business owners often make is not taking advantage of all the deductions that are available to them. This can include things like the home office deduction, the self-employment tax deduction, and the car expenses deduction.
- Failing to plan ahead can also be a mistake. Small business owners should always make sure they have enough money set aside to cover their tax bill, especially if they expect to owe money to the IRS.
- Finally, it is important to remember that tax laws are always changing, so it is important to stay up-to-date on the latest changes. This includes making sure you are using the most recent version of your tax software.
If you want to avoid making these common mistakes, it might be helpful to consult with a tax professional. They can help you make sure you are taking advantage of all the deductions available to you and help you plan for your tax bill.
Conclusion by Aron Govil:
Not using a professional tax preparer is the biggest reason for penalties from the IRS. If you want to avoid making these common mistakes, use a professional tax preparer.
It’s important to remember that tax laws are always changing so it is important to keep up with changes and use current tax software.
These are the most common mistakes made by small business owners when filing their taxes: not keeping track of all expenses, not taking advantage of all deductions, failing to plan ahead financially, and not using a professional tax preparer. By avoiding them, small business owners can easily file their taxes.