Avoiding Common Tax Filing Mistakes

Small tax filing mistakes can cost your business hefty fines or delays in refunds. Here’s how to avoid common errors when preparing your tax return.

1. Missing Deadlines

Failing to file by April 15 (or March 15 for S-corps/partnerships) can lead to penalties. Mark your calendar and set reminders!

2. Incorrect Tax Classification

Ensure your business is properly classified (LLC, S-Corp, Sole Proprietor) to maximize tax benefits.

3. Not Keeping Proper Records

The IRS requires documentation for deductions and expenses. Use cloud accounting software to store receipts digitally.

4. Underreporting Income

Failing to report ALL sources of income (PayPal, Venmo, freelance work) can lead to audits. Verify all earnings match your records.

5. Overlooking Deductions

Many business owners forget to claim:
✔ Home office expenses
✔ Software subscriptions
✔ Business-related meals & travel

Accurate tax filing saves time, money, and stress. Need help getting your books in order before tax season? Blue Rock CFO provides expert bookkeeping services so you can avoid costly mistakes.