Small Biz Tip: Taxes: Common Errors

Tips from March 9, 2010

With many business tax returns due on April 15th, the Small Business tips today discuss common tax return errors and how to avoid them.

  1. The most common business tax return error is also the easiest to avoid – make sure the return is signed by a company officer.
  2. According to the IRS, the #2 business tax return error is failing to include the correct tax ID number. Is yours correct?
  3. Incorrect sequencing or missing forms are easily preventable return errors. Review the instructions for each return one last time.
  4. Late or inaccurate election to be treated as an S corporation. This is a big one, because an invalid election will mean your corporation will be subject to double-taxation for the year.

Daily Overview: With correct preparation and execution, tax time doesn't have to be stressful. Be prepared, organized, and turn to help if you need it.

Big thanks to Kyle Durand for his excellent tax advice this week and help in writing today's tips. Need legal advice?  Visit Kyle Durand at www.entrepreneurialadvocate.com and www.preceptlaw.com.