Our team here at TaxCom, LLC is dedicated to helping small businesses like yours take care of all their financial matters, and that includes helping you file your business taxes. Over the years, we have helped small business owners deal with a variety of tax problems, and in this article, we will go over a few examples of the most common small business tax issues and how you can avoid them.
- Neglecting Self-Employment Tax- In our experience, many new small business owners experience a nasty shock the first time they pay taxes after starting their operations, as they are required to pay an additional self-employment tax on that income. Our team can help you calculate your self-employment tax and make quarterly payments to ensure that you don’t end up owing the IRS money when tax time rolls around.
- Not Reporting Cash Payments- Another example of tax problems that we see a lot when it comes to small business taxes is failing to accurately track and report cash payments. Your business can land in serious hot water if you neglect to report cash-based income, so it’s important to make sure you keep accurate records. Our team can help you with your bookkeeping to ensure that you aren’t accidentally understating your income.
- Overstating Business Expenses- A third example of tax problems that are common to small business owners is over-deducting business expenses. The IRS has strict rules about what does and does not count as a business expense, and many small business owners guess wrong about what they are allowed to deduct. Our team is thoroughly familiar with these regulations, and we can help you calculate and document all your relevant deductions so that you don’t get penalized for any mistakes.