Tax season is stressful enough without the IRS putting your return on hold. But every year, thousands of small business owners experience delays or receive IRS notices because of avoidable errors.

These mistakes aren’t usually about fraud or deception. Most often, they come from moving too quickly, misreading the rules, or forgetting how many pieces go into even a “simple” return. Here are five common errors that can hold up your refund or invite unnecessary attention from the IRS, along with tips to prevent them.

1. Mismatched Information

The IRS uses matching systems to cross-check what you report with what banks, payroll providers, and clients report. If your return includes income that doesn’t line up with what’s reported on a 1099 or W-2, your return may be flagged for review.

This also includes personal details like names, Social Security Numbers, Employer Identification Numbers, and addresses. Even small discrepancies can create delays.

How to avoid it: Double-check every form before filing. If a 1099 or W-2 looks off, follow up with the issuer. It’s better to file a complete and accurate return a little later than to file early and have to fix it later.

2. Filing Too Early

Filing early sounds great if you’re expecting a refund. But submitting your return before you’ve received all your tax documents is a common cause of problems. Late-arriving 1099s, corrected W-2s, or K-1s can easily throw your return off.

How to avoid it: Wait until at least mid-February to make sure all your paperwork has arrived. Check your mail and email carefully, especially if you did freelance work, received investment income, or were part of a partnership or S-corp.

3. Missing Signatures or Filing Glitches

If you’re filing by paper and forget to sign your return, the IRS won’t process it. If you’re e-filing, rejected submissions are often caused by things like incorrect PINs, mismatched names or birthdates, or issues with last year’s AGI.

How to avoid it: If you’re filing electronically, make sure you get confirmation that your return was accepted. If it’s rejected, take the error code seriously and fix the problem right away. If you’re mailing a paper return, double-check that everything is signed and dated.

4. Overclaiming Deductions

Deductions are a powerful tool for lowering your tax bill, but they can also be a red flag if they seem too aggressive or unsupported. Common red flags include:

• Claiming 100% business use of a personal vehicle
  
  
• Taking a home office deduction without having a dedicated space
  
  
• Reporting high travel or meal expenses without receipts
  
  
• Claiming credits that don’t fully apply to your situation
  
  

How to avoid it: Be honest and thorough in your recordkeeping. If something feels like a gray area, get professional advice. The IRS looks for patterns that don’t match your business size or type, and deductions that are too good to be true tend to draw attention.

5. Forgetting Smaller Income Sources

It’s easy to overlook income that didn’t come with a form attached. A few freelance gigs, interest from a bank account, or online sales that didn’t trigger a 1099 still count as income. And the IRS often has a copy of those amounts, even if you don’t.

How to avoid it: Keep a log of all income sources throughout the year, no matter how small. If you receive payments through platforms like PayPal or Venmo, those may be reported to the IRS depending on how much you made and the platform’s reporting practices. If in doubt, report it.

A Clean Return Is a Faster Return

Avoiding these mistakes isn’t just about staying out of trouble. It’s also about making sure your refund doesn’t get stuck in limbo while the IRS sorts through corrections. Even during a smooth tax season, a small error can lead to weeks of unnecessary waiting.

The best way to get your refund quickly is to file an accurate, complete return. Take the time to review your documents carefully, ask questions, and make sure everything matches up. If something feels off or confusing, a tax professional can help you catch issues before they become problems.

Need a second set of eyes on your return? We’re here to help.