When you own a small business, you have to be a ‘jack of all trades.’ Not only are you worried about renting your business space and making sure all the utility bills are paid, but you need to be a boss and mentor to your employees and the marketing face of your business. Suffice it to say that being an entrepreneur is both exhilarating and exhausting.
Of course, on top of all the things you need to manage to handle the day-to-day operations of your business, you also need to worry about the big picture legal aspects of having a small business – including the tax laws that apply to small businesses.
Hopefully, if you have been in business for some time, you already have one or two tax professionals with whom you can consult on a regular basis. Yet, even those businesses with tax advisors or CPAs on the ready might experience a tax issue that requires the help of a seasoned tax attorney. In addition, if you are going it alone when it comes to your small business taxes then there are some possible pitfalls that you need to be careful to avoid.
In this article, we will discuss four common tax mistakes that small businesses tend to make. Also, we will conclude the article with some guidance on how to rectify any problems with the Internal Revenue Service (IRS) in case you have already made one of those mistakes and are looking to fix the problem. If, after reading this article, you would like to discuss your own tax situation, we invite you to call the Sarasota tax service law firm for businesses, the Law Office of Mary E. King, P.L.
The Law Office of Mary E. King, P.L. can make sure that your tax issues are resolved efficiently and at the lowest cost to you. Please fill out our online contact form, or call us at 941-906-7585 today.
Common Tax Mistake #1 – Underpaying Estimated Taxes
If you expect to owe more than $1,000 in taxes when you file the annual tax return for your business, then you should be making estimated taxes throughout the year.
Indeed, most business owners make estimated tax payments with the IRS. Estimated taxes are payments you make every quarter, in which you look at past years’ earnings and determine how much in taxes you would generally owe every three months. With electronic payments, paying estimated taxes to the IRS for your small business is very easy to do.
If you do not pay, or underpay, your estimated taxes, you might make your business vulnerable to IRS penalties.
Common Tax Mistake #2 – Failing to Depost Employment Taxes
Any business owner with employees is expected to deposit the taxes they withhold (plus the employer’s share of taxes) through electronic fund transfers to the IRS. Your small business may be facing a penalty if those taxes are not deposited correctly, or not deposited on time.
Common Tax Mistake #3 – Late Filings
As with our individual tax returns, the tax returns for your small business must be filed on time. Small businesses are susceptible to the same types of late filing penalties that individuals face. The IRS notes that late filings can be a perennial problem of a lot of small businesses.
Common Tax Mistake #4 – Failing to Separate Personal and Business Expenses
In this gig economy, a lot of people are owners of sole proprietorships. Without having any employees, or even a brick and mortar place of business, which is how many freelancers operate, it can be tempting to just have all of your expenses on one credit card.
However, if you want to claim certain small business tax deductions, not having a separation between your business and personal finances can become a real problem. Particularly, if your small business ever comes under audit.
How To Get Out Of a Tax Jam If You Made One of The Above Mistakes?
The best way to unwind any tax issue with the IRS is to hire an experienced tax attorney. Unlike a CPA or tax agent, a tax attorney has specialized knowledge and experience dealing with the IRS when someone has a tax problem or needs legal representation in connection with an IRS inquiry.
Talk to a Sarasota Tax Service Law Firm for Businesses So You Can Get the Help You Need
No question, dealing with the IRS can be stressful. Yet, having a Sarasota tax service law firm for businesses at your side to advise you on options and strategies for responding to the IRS is worth its weight in gold.
Consider reaching out to the Law Offices of Mary E. King to help. Tax matters can be complicated, and thus, it is always helpful to have someone in your corner who understands the tax law and deals with the IRS on a regular basis. Indeed, beyond just the stimulus payment from the IRS, there could be other issues with which a seasoned tax attorney can help.
So, when it comes to dealing with tax relief and tax litigation, you need to talk to a Sarasota tax service law firm for individuals that can help. Mary E. King has spent her career concentrating in tax law and can help you with tax scams in Florida and elsewhere. Attorney King has a wealth of information about what types of options would make the most sense for you and your business.
That helps explain why she’s received an A+ rating from the Florida Better Business Bureau. If you have a tax-related issue – no matter how small or how large – setting up an initial consultation with Mary E. King, tax lawyer of Florida, is the first step you should take towards relief.
The Law Office of Mary King P.L. offers complete IRS problem-solving services including all areas from tax debt settlement to planning the most efficient tax strategy for individuals and businesses. Call us today to schedule an initial consultation. With years of experience as a tax lawyer in Sarasota for many clients, Attorney Mary E. King can make sure that your tax issues are resolved in your favor. Fill out our online contact form, or call us at 941-906-7585. Remember, at the Law Office of Mary E. King, we are focused on solving your tax issues for good.