If you own a small business you have a special set of concerns at tax time. Here are 5 steps to take to reduce your risk of problems with your business return.
- File on time and pay the taxes due. Sounds simple but many business owners fail to do these simple things, resulting in penalties and interest charges.
- Remember to make estimated tax payments during the year. A qualified tax preparer or tax software will tell you what you should be paying.
- Take all the deductions you are entitled to but avoid the temptation to take unqualified deductions.
- Take the time to maintain accurate records so that you or your tax preparer can complete accurate returns in a timely manner.
- Use care if you are contemplating classifying workers as contractors, rather than as employees. This has become an area of focus for the IRS so use care.