Doing taxes on your own can save your business money, but it could be costing you in the way of missed deductions. While many business owners stick with the deductions they are aware of to maintain a clean tax file, doing so could cause them to miss legitimate items that could help lower their tax bill. Michael Raanan of Landmark Tax Group, shares tips on how you can maximize your business and get all of the deductions for which you are entitled.
(Photo courtesy of Michael Raanan)
Don’t be afraid of the IRS
Many people prefer not to deal with the IRS since they are not interested in being audited, but the agency offers many resources to small business owners. Raanan states, “Business owners have various sources they can turn to when looking for tax deductions, such as the IRS Publication. The publication discusses common business expenses and explains what is and is not deductible. It also covers general rules for deducting business expenses and goes into detail about specific expenses most business owners have questions about. Another way business owners can find deductions is through their tax preparation software. There is no shortage of tax preparation programs that will walk taxpayers through a series of questions to help determine which deductions should be taken.”
Seek professional help
If you’re not sure what you can and can’t deduct, it may be time to hire someone who knows. Utilizing a licensed professional can save your business in the long run. According to Raanan, “When in doubt, contact a licensed tax professional. With the ever-changing tax laws and regulations, business owners can often feel overwhelmed when attempting to prepare tax reports for their small business. This may lead to inaccuracies such as calculation errors, which may result in an audit or a collection letter from the IRS asking for penalties and interest. Moreover, business owners may also be leaving money on the table when not taking certain tax deductions or credits they are entitled to.”
Missing out on legitimate business deductions could end up landing you a tax bill that is very difficult to pay. By utilizing resources available from the IRS or the Small Business Administration, or by simply using a professional, you can ensure that your taxes are prepared perfectly, while including all of your deductions.
This article was written by Alaina Brandenburger of Examiner.com for CBS Small Business Pulse.