A mistake on a tax return can lead to penalties, interest, missed deductions, and an unexpectedly large tax bill.
Being self-employed or running a small business comes with myriad responsibilities. Whether or not you have a staff to help, the buck stops with you. And some of your tasks require skills and knowledge you may not have had before launching your new venture. You either have to learn quickly or enlist expert help.
Income taxes are among your most important—and challenging—jobs. The good news is that many costly tax mistakes are preventable. By understanding where business owners commonly go wrong, you can keep more accurate records, avoid unnecessary problems and potentially reduce your tax liability. Here are seven of the most common mistakes.