If you are responsible for doing business taxes each year, you need to be aware of the most common mistakes that are made in order to avoid them. If you know what to watch out for when filling out all of the paperwork, you can have a better chance at avoiding an audit at the end of the year. Some mistakes are because of something you may do, while others are because of something you may forget to do. Here are some of the most common mistakes you could make when filling out business taxes.
Issues with Paperwork When Doing Business Taxes
Putting inaccurate information into your business taxes is one of the most common issues the IRS has to deal with each year. This can be intentional or not, but either way, the IRS is going to make sure you fill things out properly. If you told them that you did not make as much money as you truly did, you will be responsible for the fees on top of the business taxes you already have to pay. If the IRS believes that you intentionally misrepresented your income to avoid paying additional taxes, you can also be hit with fines and federal charges, on top of the back taxes that you owe.
Issues with Payments When Doing Business Taxes
One of the other common types of issues with taxes that your business is required to file is not making your payments on time. Your business is required to pay specific things on precise schedules. This can include deposits for payroll, estimated quarterly taxes, and the total amount of business taxes you are responsible for. If these are not paid out on the preset schedules set forth by the IRS, you could end up facing long-term issues with the IRS.
Try and complete your taxes as carefully and honestly as possible. This will help ensure you have the least potential issues with your taxes, and are not as likely to have a visit from an IRS auditor. Read through your responsibilities and your paperwork carefully in order to prevent any of the consequences that can come from any of these common mistakes.