Filing taxes is a necessary part of running a business, but simple mistakes can lead to penalties, delayed refunds, or even IRS audits. At Aretera Corporation we help small businesses navigate tax season with confidence by ensuring accuracy and compliance.
Here are some of the most common tax filing mistakes and how to avoid them.
1. Missing Filing Deadlines
Many business owners miss tax deadlines, which can result in costly penalties and interest charges. In addition to the standard April 15 deadline, businesses may need to file quarterly estimated taxes, payroll taxes, or sales taxes.
✅ How We Help: We keep track of your filing deadlines and ensure your tax returns are submitted on time, helping you avoid unnecessary fees.
2. Choosing the Wrong Business Structure for Tax Purposes
Your business structure (LLC, S-Corp, C-Corp, etc.) impacts how you’re taxed. Many small business owners choose the wrong structure and end up paying more in taxes than necessary.
✅ How We Help: We evaluate your business and recommend the best structure to minimize your tax burden.
3. Misclassifying Workers
Incorrectly classifying employees as independent contractors (or vice versa) can result in IRS penalties and back taxes. Employees must receive a W-2, while independent contractors receive a 1099.
✅ How We Help: We ensure your payroll and contractor classifications comply with IRS regulations, reducing your risk of fines.
4. Forgetting to Claim Deductions
Many businesses fail to claim eligible tax deductions, such as home office expenses, mileage, marketing costs, and business meals.
✅ How We Help: We make sure you claim all applicable deductions while keeping detailed records to support your tax filings.
5. Poor Record-Keeping
Losing receipts, failing to track expenses, or not keeping organized financial records can lead to errors and missed deductions.
✅ How We Help: We set up a streamlined bookkeeping system to ensure accurate financial records and stress-free tax filing.
6. Errors in Reporting Income
Failing to report all business income, whether from cash sales, digital transactions, or side projects, can trigger IRS audits.
✅ How We Help: We reconcile your accounts and financial records to ensure accurate income reporting and compliance.
7. Ignoring Estimated Tax Payments
If your business doesn’t withhold taxes from your income (common for sole proprietors and LLCs), you may need to make quarterly estimated tax payments. Many business owners forget, leading to penalties.
✅ How We Help: We calculate and schedule your estimated tax payments to keep you on track and penalty-free.
8. Filing the Wrong Tax Forms
Different business entities require different tax forms. Filing the wrong form or missing required schedules can delay processing and lead to IRS inquiries.
✅ How We Help: We ensure you use the correct tax forms and complete them accurately.
9. Overlooking Sales Tax Compliance
If you sell products or services that require sales tax collection, failing to file and remit sales tax properly can cause major financial and legal headaches.
✅ How We Help: We help you register, track, and file sales tax correctly, so your business stays compliant.
10. Not Seeking Professional Help
DIY tax filing often leads to mistakes, overlooked deductions, and compliance issues. Working with experienced professionals ensures accuracy and maximized tax savings.
✅ How We Help: Our team handles everything from tax preparation to long-term tax strategy, giving you peace of mind and more money in your pocket.
Make Tax Season Hassle-Free with Our Help
Tax mistakes can be costly, but they’re easily avoidable with the right guidance. At Aretera Corporation, we provide expert tax preparation and planning services to ensure your business stays compliant and financially strong.
Let’s get your taxes done right—contact us today!
Disclaimer:
The information provided in this article is for general informational purposes only and is not intended as professional advice. Our firm makes no guarantees about the accuracy or applicability of the information. For specific advice related to your situation, please contact us directly. We are not liable for any decisions made based on the content of this article.
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