Filing business taxes should be a smooth process. But every year, many business owners face delays that could have been avoided.
Missed deadlines can lead to penalties, interest charges, and unnecessary stress. The good news is that most delays happen for predictable reasons.
Below are the most common issues that delay business tax filing and what you can do to prevent them.
1. Missing or Incomplete Financial Records
One of the biggest causes of delay is disorganized bookkeeping.
Your tax professional cannot prepare accurate returns without:
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- Complete income records
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- Expense documentation
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- Bank and credit card statements
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- Payroll reports
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- Loan information
If transactions are missing or accounts are not reconciled, extra time is needed to clean up the books before filing.
Tip: Reconcile your bank and credit card accounts monthly and keep digital copies of receipts.
2. Late or Missing 1099 Forms
Businesses must issue certain information returns by January 31 each year.
For example:
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- Form 1099-NEC is generally due to contractors by January 31
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- Copies must also be filed with the IRS by January 31
If contractor payments are not properly tracked throughout the year, preparing 1099s can cause delays.
Tip: Collect Form W-9 from contractors before paying them. This ensures you have the correct name and Taxpayer Identification Number on file.
3. Unreconciled Bank and Credit Card Accounts
Unreconciled accounts create confusion. If the balance in your accounting software does not match your bank statement, adjustments must be made before tax filing.
This process takes time and may require reviewing months of transactions.
Tip: Close out each month properly. Accurate monthly bookkeeping prevents year-end surprises.
4. Mixing Personal and Business Expenses
Using the same account for personal and business transactions is a common issue. It makes it difficult to determine what is deductible and increases audit risk.
Cleaning this up before filing can delay your return.
Tip: Always maintain a separate business bank account and credit card.
5. Waiting Until the Deadline
The IRS filing deadlines for most businesses are:
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- March 15 for Partnerships and S Corporations
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- April 15 for Sole Proprietors (Schedule C) and C Corporations
When business owners wait until the last minute, tax professionals may already be fully booked.
If additional information is needed, there may not be enough time to complete the return before the deadline.
Tip: Start preparing at least 60 to 90 days before your filing deadline.
6. Payroll and Sales Tax Issues
Payroll reports must match what was filed during the year. If payroll tax returns such as Forms 941 or state filings, do not align with bookkeeping records, corrections may be needed before filing.
Similarly, unpaid or incorrect sales tax filings can complicate year-end reporting.
Tip: Review quarterly payroll and sales tax reports to ensure accuracy.
7. Incorrect Business Classification
Some businesses are unsure whether they are filing as a sole proprietor, partnership, S corporation, or C corporation.
Filing under the wrong structure can cause serious delays and may require amended filings.
Tip: Confirm your business entity type and tax classification with your accountant before tax season.
8. Missing Prior-Year Information
Your tax preparer may need:
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- Prior year tax returns
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- Depreciation schedules
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- Carryforward losses or credits
If these documents are not available, filing may be delayed.
Tip: Keep at least 3 to 7 years of tax records organized and accessible.
How to Avoid Tax Filing Delays
The key to stress-free tax filing is consistent bookkeeping throughout the year.
Here is a simple checklist:
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- Keep bookkeeping updated monthly
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- Reconcile all accounts
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- Collect W-9 forms from contractors
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- Review payroll and sales tax reports quarterly
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- Organize financial documents digitally
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- Communicate early with your tax professional
When your books are clean, tax filing becomes faster, easier, and more accurate.
Final Thoughts
Most business tax filing delays are preventable. The earlier you prepare, the smoother the process will be.
If your bookkeeping is behind or you want to make sure your records are ready before tax season, working with a professional bookkeeper can save you time, money, and stress Free.
How Accredited Bookkeeping Can Support Your Business
At Accredited Bookkeeping, we understand the challenges small businesses face when it comes to managing finances. We’re here to help you streamline your bookkeeping processes, avoid unnecessary financial errors, and gain greater clarity about your financial health. Our services are designed to fit the specific needs of your business, giving you peace of mind while you focus on growth.
Contact us today for a free consultation and discover how we can make bookkeeping easier for you.
marianne@accreditedbookkeeping.com
Marianne Kirwan
352-626-0116
