4 ways small business owners can help take the pain out of 2018 taxes.
1. Be best friends with your accountant year-round.
Your accountant is actually your business advisor. You don’t have a full-time finance person. You don’t have a CFO. So, they’re the ones advising you about your business financials and the growth of the company. If you’re not already talking to them on a weekly basis, talk to them at least once a month.
2. Streamline your financial data.
The best way to save money for taxes is by hooking up other business applications so you can get that data flowing into a cloud based accounting tool such as Xero. Then, work with your accountant or advisor throughout the entire year to help minimize your taxes, making sure that you have the right deductions all year long. So, by the time you get to the end of the year to file your taxes, it’s painless. It’s seamless.
3. Learn (some) accounting.
You don’t need to be a CPA, but any accounting knowledge you gain now can only benefit you. Ask your accountant questions, learn the ins and outs of your financial statements, and go through your tax forms.
4. Give yourself plenty of time in advance to organize.
Know your filing due dates, and work backwards. Allow time to gather all your documents, especially the paper receipts. Hiring a bookkeeper can also help you organize documents easier, and save you time.
For more helpful tips and resources on small business taxes, check out the related articles below.
PayPal and Xero do not provide tax, legal, or accounting advice. The contents of this site are provided for informational purposes only. You should always obtain independent, professional accounting, financial, and legal advice before making any business decision.
Frequently asked questions.
Because we complete the required information on the Form 1099-K using the information that you supply to us through your PayPal account, we need you to take action on your account.
The B-Notice we sent provides the additional information we need from you. You have received either a 1st B-Notice or a 2nd B-Notice.
- If you received a 1st B-Notice (which happens the first year that the IRS identifies a mismatch in tax identification number/legal name), log in to your PayPal account and follow the Alert Notification (bell icon) to provide the necessary information. Note: You may be required to download and fill out a tax Form W-9.  >
- If you received a 2nd B-Notice (which happens the second consecutive year that the IRS identifies a mismatch in tax identification number/legal name), please provide either a copy of your Social Security Card (individuals or sole proprietors) or a US IRS tax Letter 147C (entities). Log in to your PayPal account, and go to the Resolution Center to upload the document.
Please note that the information or relevant tax Form needs to be processed by PayPal before the deadline mentioned on the B-Notice in order to prevent your account from becoming further limited.
- If you have multiple PayPal accounts, you may need to verify that your tax identification number is accurate for each account.  >
- Please make sure all pages of the document are included and signed if applicable prior to logging in to your PayPal account and uploading the document. You may also send documents to:
PO Box 45950
Omaha, NE 68145
If the discrepancy persist, you may receive an IRS B-Notice later in the year to help you correct the mismatch.
Some common reasons why a TIN may fail verification include:
- Invalid Tax Identification Number (EIN, SSN, iTIN)  >
- The name that appears on your PayPal account does not match with the IRS has on file.  >
- The business name registered onto your PayPal account is different than the legal business name.
Tip: Minor typographical errors with the name (missing period or capitalization) in a business name would not be why there is an IRS mismatch
How do I change the name on my PayPal account?
A paper copy of your 1099-K will be sent to you. If you need an additional copy please contact us.Here's how you can access your tax Form 1099-K online from within your PayPal account:
- Click Reports.  >
- Click Tax documents.  >
- Select the tax year you need.
- Go to payUSAtax.com by April 15 and select Make a Personal Payment.  >
- Select the relevant tax payment category, enter your information, and choose PayPal for payment.  >
- Log in to your PayPal account to confirm your payment and get a confirmation number.
Can I use PayPal Credit to pay my federal income taxes over time?
Yes, qualifying U.S. customers can use PayPal Credit to pay federal income taxes over time to the IRS through payUSAtax.com, on tax payments of $99 or more. If you use this option, the IRS will receive your tax payment right away.
Check the offer’s details, Terms and Conditions here.
If you have any issues with the payUSAtax.com website, please contact them at (855) 508-0159 or by going to the Contact Us section of their website.