Unfortunately, there are a number of business owners who make mistakes with their taxes each year. Some of these mistakes cost business owners a lot of money. First, they might have to pay for legal help to fight cases filed against them in court. Also, the mistakes have to be corrected by a tax professional. Even if legal help is hired, fines and interest might have to be paid to government agencies. Filing a Business Tax Return in Tulsa is a serious matter. It’s one that should be left to a tax professional, not the business owner. There are some common mistakes made on tax returns, business owners should know about.
One mistake that a business owner may make is not keeping good records. It’s understandable that a business owner will have a lot to think about over the course of a business year. That still isn’t an excuse for forgetting to keep accurate records. Relying on memory alone is one of the worst things that can be done. A common mistake with record keeping is mixing personal finances with business finances. For example, using a personal credit card for business expenses while not keeping track of how much is being spent. This can lead to an estimated guess for the amount spent that is either too high or too low.
Another mistake that a business owner can make on a Business Tax Return in Tulsa is not classifying workers properly. Independent contractors should never be classified as part of payroll costs. Instead, independent contractors must be treated as being outside services on business tax returns. Classifying an independent contractor as an employee can add 10 percent to the tax costs associated with that worker. Employees should never be classified as independent contractors in an attempt to avoid paying taxes.
A business owner can go to MuretCPA.com or another tax company to get professional help for business taxes. Since any mistakes will need a professional’s help, it’s best to hire a professional from the start to avoid having mistakes in the first place. Hiring a professional can also help to guarantee that taxes are done on time each year. There are penalties for people who file tax returns late.