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- iHaveNet.com: Small Business Guide
Small Business Money Matters
No business wants to have its tax returns examined any more closely than necessary.
Below are some of the most common errors businesses make when filing their taxes. Be sure you steer clear of these potential tax audit red flags.
Preliminary Information, Filing Status, and Exemptions
- Include the correct Social Security number for you and your dependents.
- If you plan to be out of the country on vacation on April 15, don't assume you're entitled to an automatic filing extension. You must request an extension on Form 4868.
Gross Income
- If you're reporting any income differently than it was reported to you on Form 1099, be sure to note the amount of income from the 1099 on your return then adjust it attaching your own statement explaining the adjustment.
- If you rolled over a regular IRA to a Roth IRA, include one-quarter of the resulting income on your return (unless you already opted to include it all the year your rolled over.).
Adjusted Gross Income
- You can't make an IRA contribution for one year after April 15 of the next year, even if you receive a filing extension.
- You can't take a deduction for an IRA rollover.
- You can't base IRA contributions on unearned income (such as dividends, interest, rents from rental property).
- Don't deduct IRA contributions you made between January 1 and April 16 of the new year, which you treated as the previous year's contributions (deductible on the previous year's return).
- You can't convert your regular IRA to a Roth IRA if your income is over a threshold amount.
- Don't deduct any Roth IRA contributions.
Deductions and Tax Computation
- Don't deduct the previous year's state and local taxes you paid in the current year (for example, don't deduct your fourth-quarter state estimated tax payment for 2008 made in 2009).
- Don't take a deduction for your commuting expenses.
- Make sure to look under the correct column for your filing status when you look up your tax liability in the tax tables.
Other Taxes
- If you had self-employment income of $400 or more, be sure to figure self-employment tax. You must include in self-employment income directors fees and income from a partnership or limited liability company.
- If you exercised an incentive stock option in 2001 or owned private activity bonds, check to see whether you owe any alternative minimum tax.
Payments
- Make sure you attach your Form W-2s (and any 1099s showing tax withholding) to your return.
- Recheck your math.
- Be sure to sign your return. If you file jointly, both spouses must sign the return.
- If your return is more than five pages, add extra postage to ensure proper delivery to the IRS.
- If you apply for an extension, don't forget to include a check for any estimated balance due.
- Send your estimated taxes separately from your income tax return.
Small Business Guide
- Starting Up Your Business
- Coming Up With a Winning Business Idea
- Common Startup Mistakes
- The New Rules for Startups
- Business Incubator FAQs
- Naming Your Business
- Researching Your Business
- Your Personal Savings
- Registration, Licenses, and Permits
- Getting a Tax ID Number
- Fast-Growth Startup Resources
- Structuring Your Business
- Overview: Corporations
- State Offices of Incorporation
- Incorporate Out of State?
- Writing a Partnership Agreement
- Choosing a Board of Directors
- Basics of a C Corporation
- Basics of an S Corporation
- Basics of an LLC
- Basics of a Sole Proprietorship
- Basics of a Non-Profit Corporation
- Basics of a Professional Corporation
- Basics of a General Partnership
- Basics of a Limited Partnership
- Your Company's Public Relations
- Elements of a Successful Public Relations Campaign
- How to Use Your Press Coverage Effectively
- Press Releases
- How to Write a Successful Press Release
- Sample Product/Service Press Release
- Sample Commentary Press Release
- Sample Event Press Release
- Sample Tips Press Release
- Sample Personnel Press Release
- Effective Competitive Analysis
- Managing Purchasing to Maximize Cash Flow
- Top Six Pricing Mistakes Businesses Make
- How to Avoid Lowering Your Prices
- Bidding Basics
- Hiring Staff
- Creating an Effective Job Description
- Do You Know How to Pick Them?
- Little-Known Hiring Resources
- Classifying Contract Workers
- Tips for Successful Interviewing
- What You Can't Ask in a Job Interview
- New Hire Paperwork
- Small Business Insurance
- Types of Insurance for Small Businesses
- Small Business Insurance FAQs
- Insurance Resources for Small Businesses
- Home Office Insurance: Myths & Realities
- Small Business Resources
- Government Resources for Small Business on the Web
- Resources for Women Entrepreneurs
- Fast-Growth Startup Resources
- Small Business Security Resources
- Taking Time Off
- Your Pre-Vacation Checklist
- How to Take a Vacation
- Learning to Delegate
- Getting Away When You Can't Get Away
- Preparing for Tax Season
- Year-End Planning Tax Savers
- 10 Ways to Pay Less in Tax
- 25 Common Business Deductions and Expenses
- Avoid These Common Errors and Audit Triggers
- Understanding the Home Office Deduction
- Corporate Income Taxes Primer
- Employment Taxes Primer
- Sales Tax Primer
- Sole Proprietorships and Partnerships Tax Primer
- How to Get a Filing Extension
- Year-End Reconciliation
- Getting the Most from Your Accountant
- Developing Accurate Financial Projections
- Cash Flow
- 10 Ways to Help Increase Your Cash Flow
- Cash vs Accrual Accounting
- Bookkeeping and Record Keeping Basics
- Quick Ways to Get Through a Cash Crunch
- Projecting Cash Flow
- Cash Flow Triage
- Getting Funding
- Cash Flow Through Factoring
- Small Business Investment Corporations (SBIC)
- Traditional Funding Sources
- Non-Traditional Funding Sources
- Your Company's Credit
- How to Read a Business Credit Report
- Credit Terms Glossary for Your Small Business
- How to Protect and Improve Your Business Credit Rating
- Give Your Business the Financing Edge
- Employee Compensation
- Employee Benefits
- Bonuses: How To Be Fair
- Workers' Compensation Q&A
- Keeping Workers' Compensation Costs Down
- Payroll Management Choices
- Key Elements of Payroll
- Working with a Payroll Service Provider
- How to Create a Business Plan
Small Business Money Matters - Avoid These Common Tax Errors and Audit Triggers
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