Most small business owners don’t miss deductions because they’re careless. They miss them because they don’t know where to look.
Here’s what the IRS and tax experts consistently see missed most often.
What Gets Missed the Most
Income that doesn’t match deposits
A large percentage of small business tax returns underreport income. This usually happens when deposits aren’t reviewed closely or income comes from multiple sources.
Expenses without backup
Expenses are often misreported because receipts are missing, mixed with personal charges, or never categorized.
Mileage that was never logged
Mileage is one of the most commonly overlooked deductions. If it’s not recorded somewhere, it doesn’t count, even if the driving happened.
Home office details
Many business owners skip this deduction because it feels confusing or risky, even when they qualify.
Big changes not explained
Buying equipment, a vehicle, moving, or having a major income shift all matter — but they’re often not clearly documented for the tax preparer.
An E-Z Way to Remember: MILES + B
Before tax time, do a quick check:
M – Mileage recorded
I – Income matches deposits
L – Loose expenses paid personally
E – Equipment or big events noted
S – Space (home office numbers)
+ B – Backups (receipts and records)
Covering these areas alone can prevent the most common tax-time surprises.
The Bottom Line
Tax time is easier when you know what the IRS actually looks for.
A few simple checks now can save stress, time, and money later.
And if you’re thinking, “I wish I had a simple place to start,” we’ve got you covered.