It’s that time of the year again. It’s tax time. As you rush to complete your business and personal tax returns and submit them on time, it is crucial that you don’t get in such a hurry that you make tons of errors in your tax returns. The best way to avoid errors is to use one of the tax return preparation software services, but even then it isn’t guaranteed that you wonk make some honest mistakes and fumble your return. With that being said it is extremely important that before you send in that return you run through a checklist of common tax return errors to make sure you have not made any of them.
The Most Important Mistake to Avoid
Missing the due date, specifically missing the due date for you business tax return is the most important thing to avoid because fines and penalties begin on the due date of your business tax return. Not all business tax returns are due on April 15. in fact there are several due dates for different types of business tax returns .Sole proprietor and single-member LLC returns on Schedule C are due on the same day as the personal tax return due date – April 15. Partnership and multiple-member LLC tax returns are due on March 15. Corporate tax returns are due the 15th day of the 4th month after the end of the corporation’s fiscal year.
7 Key Business Tax Return Errors
The IRS says these are the most common errors on tax returns, including business tax returns:
- Having the wrong social security number or EIN (employer ID number). Just double check every part of your social and EIN to ensure that you have entered the correct information.
- Misspelling a name. Unfortunately this is no longer you 2nd grade english class with miss Mrs. Kelly. Misspelling a name here can lead to a lot of headache instead of just a 10 point deduction on your paper.
- Incorrect Filing Status. One of the most common errors is filing as head of household instead of filing single.
- Computation errors in figuring taxable income, withholding and estimated tax payments, and common credits and deductions.
- Withholding and estimated tax payments entered in the wrong field or written on the wrong line.
- General Math Errors. It’s 2018, use a calculator. There is no shame in double checking.
Failing to sign and date the return. Make sure you and your spouse both sign if it’s a joint return.
Hopefully this article helps you be more aware of some of the common errors you may have made on your tax return filings. Please be cautious when filing your tax return and ensure all of your data is accurate and up to date. Check the things that you think you would never mess up like your name or your SSN. Those are easy mistakes to make but they are also easy mistakes to catch and correct before it comes back to bite you. Good luck filing your returns !