Tax Problems / Tax Problem - Tulsa, Oklahoma
Common Tax Problems encountered by small businesses.
- Business tax preparation – almost all new and/or small businesses need Tax Preparation services. You should carefully choose a Tax Firm that is qualified. Run as fast as you can from any Tax Preparer that guarantees refunds and/or entices you with grandiose schemes. They will only lead you astray and cannot help you with the tax problems you surely will encounter.
- Classifying employees – the IRS in Pub 15-A determines employee work status for purposes of federal tax withholding. Essentially the more control you have of the work environment and direction of workers determines whether someone is an employee or independent contractor. You, the small business owner, do not have the discretion to classify an employee as an independent contractor to avoid employer payroll tax and reporting. The IRS can and will correctly reclassify workers you called independent contractors and assess taxes, penalties, and interest against you.
- Overstating deductions – We have what the IRS calls a voluntary tax system. That is true! However, with that freedom comes opportunities to inflate deductions. After all, who is watching during Tax Preparation? The potential tax problems don't arise until years later, after the return is filed when the IRS decides to take a closer look at your voluntary tax return.
- Understating Income – generally an employee has little opportunity to understate his income. His employer sends him and the IRS a W2 showing what was earned. On the other hand, the small business owner generally has complete discretion to report all earnings, some earnings, or only non-cash earnings. The IRS is well aware of this and is constantly on the look out for unreported income. They have a label for this – FRAUD. This is more than just a tax problem. When accused of tax fraud you could be taken to court and face imprisonment.
Avoid these common tax problems by developing good
tax return preparation habits
from the start. Seek out a professional
Tax Preparer in Tulsa, Oklahoma, or
surrounding communities that has experience, good credentials, and has a
reputation of good ethical behavior.
As your Tulsa Tax firm and Tulsa Tax Service, Glass Tax Service offers audit representation as well.
Mon-Fri, 8am to 5pm
After hour appointments.
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