Owning a small business comes with a variety of challenges and unique issues, especially when it comes to tax return preparation. Unfortunately, even minor mistakes on your returns can lead to long-lasting problems, including inflated tax bills and issues with the IRS. If you’re a small business owner, here are a few common tax mistakes you should avoid.

A Guide to Common Tax Mistakes Business Owners Make

1. Missing Valuable Deductions

The tax code offers business owners a variety of deductions and credits to reduce their liability; these could save you hundreds or even thousands of dollars every year. Purchases for everything from office supplies to inventory are deductible, and some capital investments may qualify for additional credits. Forgoing these deductions means overpaying on your taxes and spending cash reserves you could put back into your business.

2. Inflating Your Expenses

On the other hand, some business owners try to claim more deductions than they deserve by overstating the value of their purchases. The IRS has powerful tools for detecting fraud and will likely audit your returns if they suspect irregularities. Always be completely honest on your tax returns rather than take the chance.

3. Missing the Deadline

With all the tasks business owners have to juggle, it’s easy to let the tax deadline slip by. This can be an extremely costly error, potentially resulting in hundreds of dollars in late fees and fines. If you can’t get your tax return preparation finished on time, ask an accountant for help filing an extension.

If you’re a business owner in need of tax prep help, contact Roy E. Carter, CPA, PC. His firm has provided fast, dependable service to business owners throughout Virginia’s August County since 1998. Their accountants have the expertise to minimize your tax liability and take the stress out of your tax return preparation. Visit their website for more on their background and services, follow their Facebook for more tips and advice, or call (540) 886-6251 to make a tax return preparation appointment today.