Filing a tax return for your business each year is something you must do. But you don’t want to make mistakes that can result in higher taxes than you really owe, draw IRS attention to your return, or cost you interest and penalties. Here are 20 mistakes to avoid:
Tax Mistakes
1. Misreporting Income
Income may be reported to you (and to the IRS) on information returns, such as Form 1099-MISC showing nonemployee compensation for 2019 (or 1099-NEC after 2019) if you’re an independent contractor or Form 1099-K showing credit card and certain other transactions, regardless of your entity type (e.g., sole proprietorship, C corporation) if you have a certain amount of transactions.
