Tax Errors Can Be Costly
2020 – 12/22 Tax errors can be costly for small businesses. Accidentally failing to comply with tax laws, violating tax codes, or filling out forms incorrectly can leave taxpayers and their businesses open to possible penalties. The IRS has stated that the most common errors by small businesses include underpaying estimated taxes and depositing employment taxes late or incorrectly. Other common mistakes are not separating business and personal expenses, which could trigger additional scrutiny from the IRS, and filing late returns. All of these errors can result in penalties. Using a tax preparer is one way to avoid these kinds of errors, the tax agency noted.