Tax season is in full swing and businesses across the nation are getting ready to file and make sure that their practices are in compliance with federal and state laws.
Unfortunately, not all small businesses or startups have the ability to have a full-time team of accountants keeping their financial records and taxes on the up and up. Even with precision and using available tax programs, business taxes can get complicated and expensive mistakes can occur.
Here’s a look at some of the most common tax complications businesses face every year and how OSMEAC Solutions can help your business avoid them at simple contract rates.
Poor Record Keeping
Keeping organized and updated financial records is essential to avoiding underpaying your quarterly and annual business taxes. It can also create an extremely trying process in the event that you are ever audited. If you don’t have the records and receipts to back up your deductions, you could be in for a world of financial stress.
Working with a tax accountant every quarter to help file quarterly estimated taxes can help keep your record-keeping in check and prevent inadvertent mistakes and massive end-of-year taxes.
Attempting to Benefit From Expired Provisions
Deductions and credits are an excellent way for a business to reap some rewards during tax season. While deductions are great, getting too comfortable year after year and taking the same deductions without thought can lead to trouble if the provisions expire.
Keep your business out of trouble with the IRS and stay on top of when deductions and credit opportunities expire. If you are unsure of which deductions you are eligible for this tax season, one of our contract accountants can easily help you make the right decisions while you file.
Classifying your employees correctly can mean the difference between a slap on the wrist and total tax fraud. If your business manages both full-time employees and independent contractors and you accidentally classify them wrong, you could end up having to pay unnecessarily withheld taxes this season.
This common error is one that triggers the IRS’s audit radar and could leave your business in serious legal trouble.
Missing Essential Filing Deadlines
Different sized companies face different filing deadlines and missing them can lead to late penalties they could have easily avoided with proper record keeping and accounting organization.
As a bit of free advice, here’s a list of the most important deadlines when it comes to perfecting your annual tax season:
- January 31: This is the deadline to send out employee W-2s and 1099 forms
- March 15: Tax filing deadline for S corps and partnerships
- April 17: Tax filing deadline for C corps
Quarterly estimated tax deadlines can fluctuate depending on federal holidays throughout the year and can easily create a problem. So, scheduling an annual meetup with a tax advisor can help you stay on top of your filing deadlines and avoid any fees, penalties, and audits from the IRS.
Stay On Top of Your Commercial Taxes Each Year With OSMEAC Solutions
Business taxes can easily become taxing for the new business owner; especially if they don’t have an established accounting team in place. Don’t start this tax season off with expensive mistakes. Let the outsourced accounting experts of OSMEAC Solutions help handle your taxes for you.
We are a team of financial professionals that perform outsourced accounting services for businesses that approach their budget with a fiscally savvy touch. You use us when you need us and only pay when your contract is complete.
Contact us to learn more about our services and schedule your consultation with a member of our team.