Even the tiniest max mistakes on tax returns can be costly and lead your business to face unnecessary issues with the IRS. Although the process is complex, you can avoid these small issues with enough planning and preparation. So here are the top often overlooked tax mistakes and how to fix them.

What do tax mistakes mean? 

Preparing taxes accurately is one of the most crucial parts of any tax-paying business. This process requires the person doing taxes to accurately complete the tax return papers to avoid fines or IRS audits. There are several tax mistakes that can happen while completing the tax return papers.

Let’s look at a few of the most common tax mistakes and how you can avoid them.

4 Common Tax return mistakes & how to avoid them 

Mistake 1 – Inaccurate information 

There is a large amount of information, such as SSN/EIN, bank account numbers, invoice numbers, names, etc… that the pax payer must accurately fill in. When adding this much information, it’s easy to overlook mistakes that can happen while filling in. 

How to avoid it ?

The best and only way to avoid such tax return mistakes is by constantly double-checking the information. Also, make sure that you include all the necessary information and attach all the documents. 

Mistake 2 – Failing the deadline 

The date to submit the tax return form depends on the form that you are filling out. Missing this date is also one of the most common and costly tax mistakes one can face. 

How to avoid it?

Keep your tax due date at the front of your mind. Make sure to set reminders to know when to send the tax return. This will not only help you meet the deadlines effectively but also will give you enough time to prepare your documents leisurely.  

Mistake 3 – Using the incorrect form 

Depending on the legal structure of the business, the tax form varies. So, it is essential that you select the form that matches the legal structure of your business to avoid any issues with tax later. 

How to avoid it?

Make sure that you select the correct form before starting to fill it out. So, if you have any doubts, it is wise to take the advice of a professional. 

Mistake 4 – Failure to separate business and personal taxes 

Mixing your business taxes and personal taxes can cause massive confusion. This also can lead to you being unable to accurately pay either tax. 

How to avoid it?

Create a separate bank account for your business and keep a separate account for your personal transactions. 

Why you should contact Philip Nolan to avoid tax return mistakes?

Handling taxes can be a daunting task, especially for a person with a busy schedule. Therefore, the best solution to this is to leave your taxes to a professional. 

We at Philip Nolan are an accounting firm that offers the highest quality services at high professional and ethical standards. Our talented accountants can help you handle any accounting tasks, including taxes, with ease. By leaving your taxes to us, you can stay worry-free from any potential tax mistakes.

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