To quote Benjamin Franklin, “Nothing in life is certain but death and taxes.” There’s usually more work involved for small businesses than for individuals when it comes to filing taxes, but that doesn’t mean it has to be more daunting. There are a couple mistakes made by small business owners such as assuming that your tax preparer will assume responsibility for all of your needs and that everything has been done appropriately. Here are a few tips to keep you out of trouble with the IRS.
1. Think Taxes Year Round- Tax planning should be a year round activity such as keeping up with documentation, accurate records, business related receipts and other expenses. This will make it easier when it comes time to get everything together and organized for your tax preparer. It is also easier to take advantage of tax savings and deductions throughout the year rather than trying to find last minute write-offs.
2. Utilize Tax Preparation Tools – The IRS has gone to great lengths to provide easy to find and understand material on its website for small business owners. Visit https://www.irs.gov/businesses/small-businesses-self-employed for more information. However, tax laws change and can be complex so consider hiring a tax professional to make the most of your tax breaks and deductions. Whether you do it yourself or hire a professional, keeping a checklist can help you keep track through the year.