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Small Business Tax File
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Tax Season Tips for Small Business Clients

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The idea of preparing business taxes and the path to a completed return can be daunting for small business filers, even when working with a tax professional. Even veteran business owners can find the tax return process cumbersome and difficult to complete.

Jan 20th 2022
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While many tax professionals may not find the return-filing process as complicated as their small business clients, first-time filers can get overwhelmed.

To circumvent stress for tax professionals and clients alike, preparation is key. Readying clients for new laws and forms, or navigating changes in business structure requires effective, continuous communication. Interaction throughout the year not only allows for greater planning opportunities, but also for the design and implementation of strategies that ensure the upcoming filing season will be less…well, “taxing.”

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Organize and Track Documents

Advise clients to maintain intact financial records on an ongoing basis. This is crucial for substantiating any deductions and credits claimed on a tax return, and also relevant to a potential IRS audit.

Generally, the statute of limitations for audits is three years. However, if the IRS suspects and can substantiate fraud, there is no limitation to how many tax years can be audited. Advising clients early and often, and helping them develop a record retention system, will not only support previously filed tax returns but also the preparation of future ones.

Report All Income

Many taxpayers are aware they must include income reported on 1099s on their tax return. However, they often forget to include income not reported on 1099s. This includes both cash receipts and in-kind receipts.

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