INDIVIDUAL 

INCOME TAX 

FOR SMALL BUSINESS

OWNERS


  • Make sure you have provided your Accountant the monthly business information for bookkeeping. The same would apply if you do it yourself, keep your business information properly organized and itemized by transaction. Everything you report must be accompanied with its supporting document. For example, if your purchased a car for your business purposes don't simply said I purchased a car $20,000 without provided documentation. 
  • The biggest mistake is to assume that the tax preparer will do it for your. First because many tax preparers are not accounting professionals and may not be able to tell what realistically can apply in your business taxes
  • Having your business information reported up to November may be a good strategy so your accounting firm can have time to generate reports and give you a sense of what is your business situation at that point, to make decisions.
  • Avoid reporting incomes or expenses later in during tax season after you have been told what would be your tax liability or overpayment. Although in some cases it is possible this to happen, remember that it also look suspicious. 
  • Don't use different bookkeeping systems: one to report to your Accounting firm and the other out of the book. Please give your accounting firm everything and use its report as basis to file our business taxes. 
  • Remember that the effectiveness of your business reports rely heavily in the accuracy of the information you provided to your accounting firms. Errors or omissions can lead to costly mistake and even trigger the audit. 
  • In the website Payproneb will not go into  details which type of information to provide since every business may requires different information or items reporting. If you are our client, like we do all the time, contact us to review details and providing new details if needed. 
  • Make sure you will receive prove of your yearly income either from our employer or any benefits from institutions (W-2, 1099s, SSA-1099...
  • If your are planning to claim dependents in your tax returns have their documentation available and make sure your are legally authorized to claim them in your tax returns. 
  • If your purchased a home during the year the best thing would be to see your tax preparer in advance to review the documentation since some new credits may apply for first time home buyers...
  • If you will file taxes at Head of Household please consult your tax preparer for your eligibility. 
  • Although for personal gain, you may prefer a tax preparer who make your receive higher refund or paying less tax, but later you may face consequences from IRS. We recommend you to file your tax return with a competent and honest tax preparer regardless of the result. 
  • Please consult your tax preparer for a more comprehensive information.

Whether you are operating a business or planning to file individual income tax return return in 2022 this is your best time to start preparing in advance. It may not be easy as you think since legislations change almost every year, new credits or deductions are added while others are discontinued...