Business Tax Errors When Filing
Tax time is stressful for just about everyone, no matter how simple or complex your tax return may be. If you’re responsible for filing your company’s taxes, you need to make sure that you pay attention to every single detail. Making a mistake or forgetting something can seriously delay getting your return.
1. Double (and Triple) Check Your Math
While you may be using a computer program or online software to do your taxes, there’s still going to be some amount of math involved on your part. Additionally, some people prefer to use the paper forms instead of software. Always double and triple check the numbers before inputting them. If you enter the wrong information – even if a decimal point is out of place – you could make a huge error on your taxes.
2. Make Sure to Use the Correct Forms
The last thing you want to do is spend hours filling out forms only to realize you used the wrong forms! Make sure that you’re using the right forms for your specific business type. For example, an LLC will use different forms than a corporation.
3. Check the Exact Legal Name of the Business
The business name you’re most familiar with may not be the legal business name that needs to be used on the tax forms. Make sure to use the specific legal entity name that the business used when registering or incorporating. Even punctuation, like periods and commas, have to be in the right place.
4. Use the Correct ID Number
In order to have your tax forms processed as quickly as possible, you’ll need to use the right identifying number for your business. Your company may have a FEIN or an FTB number, for example.
5. Sending Payments Correctly
In order to pay the amount you owe on your taxes, you may need to separate them. For example, if there are multiple entities under the same umbrella company, you’ll need to send separate payments for each business entity. You also should not group payments together even if you think you’re separating them by clearly notating which business entity they’re for. Send each payment separately.
In addition to following these tips, make sure to stay up-to-date on your state’s latest tax rules. The tax code is susceptible to changes every single year. It’s highly important to always stay updated on the latest guidelines.