Don’t Do These 4 Tax Mistakes at All

by Aanya Alberto A geeky girl and Vape Enthusiast

Tax payment is often the most critical part of managing a business. Several small owners used to face issues when it comes to filling tax properly. However, not filling the return on time can be an issue for any business. Obviously, you will not want the tax department to follow you or to penalize your due to late or non-payment of the tax.

The current article is all about the mistakes that one must avoid.

Incorrect Reporting of the income

Often it has been seen that people report incorrect income in the tax return. It is the worst case that is possible. You can even face the fraud charge from the government. Being a responsible business person one must not report the wrong income.

However, it is also possible that you did report an incorrect income by the fault. Maintaining the balance sheet is also a problematic issue. In case of facing issues to maintain the balance sheet, you can contact Tax CPA Los Angeles.

Remember that IRS will cross check your return with the payment that you took or paid. In the case of the mismatch, they will surely going ask the reason and may penalize you also.

Non-separation your personal and professional expenses

Often it has been seen that owners of the small businesses used to confused between the business and personal expenses. In the case of such a scenario, mismatch of expenses is a very common matter. IRS will not at all tolerate such mismatches. They expect a clear tax return of your business and personal income.

A single incorrect expense deduction can draw the eyes of the IRS to your business and taxation issues. Therefore, it is important to keep all the receipt of the expenses.

Not applying for proper deduction

Paying taxes is not at all a burden. Often it has been seen that the business owners used to pay a very nominal tax after applying all the deductions properly. It is also true that in several cases, small business owners have no clear idea about the deduction that they are permissible to get.

Hiring proper Tax CPA Los Angeles can help you to point out the deductions that they will get.

Late payment of tax

The one mistake that can cost you more than anything is the late payment of the taxes. Paying late tax can be a reason to pay penalty. However, it remains the same even you ask for an extension. Therefore, it is important that one must hire a Tax CPA in Los Angeles to complete the tax file within the given time to avoid the late fees and penalties.

Final Words

Over here you can see the tax-related mistake that one should avoid. You can a tax professional or discuss with a CPA for more information.

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About Aanya Alberto Advanced   A geeky girl and Vape Enthusiast

21 connections, 0 recommendations, 153 honor points.
Joined APSense since, March 12th, 2018, From Los Angeles, United States.

Created on Apr 12th 2019 06:37. Viewed 430 times.


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