Common Errors on Business Tax Returns

Tax season is officially here, which means individuals and business owners will begin to file returns. The Internal Revenue Service is stringent when reviewing these documents, which is why companies will want to avoid the common missteps made on business tax returns:

business-tax-returnFiling the wrong form
Business taxes aren’t as simple as income taxes, as there are multiple different forms that are used. According to the Small Business Association, filing with the wrong form is one of the most common mistakes made by companies. For example, businesses could file for a deduction that it wasn’t eligible for, which will certainly get the attention of the IRS, and potentially lead to issues down the road.

Not using a tax professional
Making mistakes on a tax return is something all businesses want to avoid, as the IRS is not an organization that is to be messed with. According to the Huffington Post, using a tax professional is essential, as these people can help ensure that filing taxes goes off without a hitch. This move will cost businesses some money, but it could end up saving them in the long run by avoiding costly errors on their return.

Missed tax credits
Many businesses have to pay a high tax bill. However, there are ways that it can be reduced, such as by using tax credits. Missing certain credits on a return is a major mistake that businesses will want to avoid. Therefore, it is probably a good idea to begin the process early, so all options can be explored. Of course, companies should also avoid filing for credits they don’t qualify for as this can lead to issues in the future.

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James F. McDonough, Jr. concentrates on wealth preservation and estate planning for high net worth individuals, closely held business matters and ownership succession, estate administration and income tax planning. He worked for three years for the public accounting firm, then known as Touche Ross, where he obtained his license as a Certified Public Accountant in 1983. In 1984, he was employed as a tax attorney by Union Camp Corporation where he engaged in planning for corporate income deferred compensation, qualified plan and tax-free exchanges. In 1986, Mr. McDonough was employed as Tax Manager for Monroe Systems For Business, Inc. Thereafter, he was employed as a tax attorney for five years where he engaged in corporate and estate tax planning and estate administration and litigation. For more information, please visit James McDonough's full biography at Scarinci Hollenbeck

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