Although filing your small business taxes each year is something you can’t avoid, steering clear of tax mistakes that can lead to an IRS audit is something you’ll want to do. Consulting an expert in business tax preparation in Weston can help you save time and enjoy a stress-free tax filing experience.
Business owners usually use various 1099 forms when reporting income. The 1099-MISC that lists non-employee compensation shows a part of your income to you and the IRS. However, you may also receive 1099s for retirement and investment accounts. Listing your income in the wrong place or failing to include all of your income on your tax returns will lead to IRS scrutiny. For this reason, it’s best to ensure that your income matches what has been reported to the IRS.
While nobody likes writing large checks to the government, you’ll want to avoid underpaying estimated taxes. It’s best to account for all the taxes you’ll owe, including self-employment tax and Medicare taxes. Unless you pay quarterly taxes throughout the year, you’ll face tax filing penalties.
If you think that the cost of a commute to and from your business location counts as a deduction, think again. Deducting expenditures that aren’t considered actual business expenses is a huge red flag to the IRS. It’s important to note that fancy business dinners and entertainment aren’t always deemed a write-off. However, you can deduct interest on your auto loan, auto property taxes, tolls, auto expenses for business-related travel, and your home office.
Besides allowing you to track your deductible expenses, keeping separate credit cards and accounts for your business expenses will help you identify out-of-the-ordinary expenses with a valid business purpose.
The team of experts at Tax CPA1 can help you avoid making costly tax filing mistakes. We specialize in tax preparation for small- to medium-sized businesses. Contact us today to learn more about what we can do for you.
Established in 2001 as a boutique firm in Pembroke Pines, we specialize in Tax Preparation for small-to-medium size businesses, Managing Books, Consulting on Accounting Technology, Implementing Accounting Software, and we also provide Part-Time Controller Services.