Client Background
A mobile food truck business with multiple locations needed help with tax preparation and deductions after realizing they had overpaid on taxes the previous year due to missing industry-specific deductions. They hired Development Theory to help with tax preparation for a food truck.
The Challenge
Missed Deductions: The owner was unaware of tax deductions for mileage, food waste, and business use of personal vehicles.
Complex Sales Tax Filings: Each food truck operated in different counties with different sales tax rates, creating tax filing confusion.
Unorganized Receipts & Expenses: Business expenses were not properly tracked, leading to missed write-offs.
IRS Notice for Tax Overpayment: The business had overpaid federal taxes but needed assistance to file an amendment for a refund.
Our Approach
Industry-Specific Tax Deduction Review: Identified all eligible write-offs, including vehicle expenses, food waste, and commissary kitchen rental.
Sales Tax Compliance Fix: Created an automated sales tax tracking system based on the location of each sale.
Expense Organization & Tracking: Implemented a digital receipt management system to capture all deductible expenses.
IRS Refund Filing: Amended the previous year's return to recover the overpaid taxes.
Quarterly Tax Planning: Set up quarterly tax payments to prevent future surprises.
The Solution
Claimed an additional $22,000 in deductions, reducing taxable income.
Corrected sales tax filings, ensuring compliance across multiple locations.
Secured a $6,500 tax refund from the IRS due to prior overpayment.
Provided a tax-efficient business structure, reducing future tax liability.
Results & Impact
Saved the business over $28,500 in taxes in the first year.
Reduced tax filing stress, making the process smoother.
Increased take-home profit, allowing reinvestment in new equipment.
Set up long-term tax efficiency, preventing overpayments.
Client Feedback
"I was paying way more in taxes than I needed to. Now, I not only got a refund, but I’m saving money every year!"
Development Theory Can Help Business Owners Like You
Looking to enhance your business strategies and maximize your financial outcomes like this business owner? Our Tax Preparation service provides you with insights that can elevate your business performance. Don't miss out on the opportunity to leverage expert knowledge for your financial success.
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