why businesses endup paying more tax
Businesses often end up paying more tax than necessary because of a few common reasons:
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Poor Recordkeeping – Missing receipts, invoices, or expense documentation means many deductions get lost.
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Lack of Tax Planning – Without proactive strategies (like timing expenses, depreciation, or credits), businesses miss legal ways to reduce tax.
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Misclassification – Treating expenses, assets, or workers incorrectly (e.g., employees vs. contractors) can increase tax liability.
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Unclaimed Deductions & Credits – Many businesses don’t fully use available deductions (home office, R&D, startup costs, etc.).
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Late or Incorrect Filings – Delays and errors can lead to penalties, interest, or disallowed claims.
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Not Using a Tax Advisor – Relying only on DIY filing or generic software often overlooks tailored opportunities for savings.
