As small business owners finalize their 2025 tax filings, opportunities still exist to reduce what they owe, according to David Perez, CEO and founder of TaxMaverick.ai. Perez, an enrolled agent who helps entrepreneurs move beyond basic compliance into proactive tax strategy, highlighted both immediate actions and forward-looking planning for business owners on the latest episode of Business Trends Today.
One of the most common pitfalls, Perez said, is incomplete documentation. “One of the biggest challenges with busy professionals today is that we don’t always get all of our documents in order in time,” he said. Accurate bookkeeping and proper expense allocation are crucial to ensuring a correct return and avoiding overpayment. For those seeking the most impactful last-minute move, Perez emphasized contributions to retirement accounts. He notes that those contributions can still be made up to the tax filing deadline.
“Contributing to a SEP IRA will allow you to defer some income this year so that you can pay less in taxes.”
Recent legislation also provides benefits for small business, as the Qualified Business Income deduction allows eligible businesses to deduct up to 20% of their income. In comparison, 100% bonus depreciation enables full expensing of qualifying assets purchased in 2025. However, most deductions tied to asset purchases require that the items be placed in service before year-end, leaving retirement contributions as the only flexible post-year-end adjustment.
Perez clarified that tax years are treated independently by the IRS, meaning business owners can file their 2025 return even if their 2024 return remains unfiled. He advised taxpayers to remain responsive to the IRS, noting that proactive engagement often results in more cooperative outcomes. Short-term payment plans typically extend up to 180 days, while longer-term arrangements require qualification and financial disclosure.
“Meet the deadlines right, because you pay more taxes just by not meeting a deadline. It's easy for newer business owners [to miss the filling date], especially if they're not aware that March 15th was a deadline for S-Corps partnerships... C-Corps deadline is April 15th, so that that's coming up.”
To reduce their tax burden, Perez outlined three immediate steps for business owners: ensure all financial documents are complete, meet all filing deadlines, and maximize retirement contributions. He said a $50,000 contribution to a SEP IRA at a 30% tax rate could yield $15,000 in tax savings.
Filing remains mandatory even for businesses showing no income or a loss, as tax credits, such as those for dependents, may still generate refunds. Individuals owed refunds may also receive interest from the IRS on delayed filings.
Entity structure is another key consideration. Sole proprietors and single-member LLCs with sufficient income may benefit from an S-Corp election, which can reduce self-employment taxes. In some cases, late S-Corp elections can be applied retroactively. Perez also highlighted Section 1202, which allows eligible C-Corp owners to exclude up to $15 million in capital gains from taxation if they held shares for at least five years, with married couples potentially excluding up to $30 million.
C-Corps entail trade-offs, including double taxation of dividends, but they can offer strategic advantages for long-term exit planning. S-Corp owners must also take a “reasonable salary” for their work to remain compliant with IRS rules, balancing compensation with distributions.
Perez concluded by emphasizing that an effective tax strategy is proactive. Early planning, proper structuring, and ongoing advisory support are critical for small business owners seeking to minimize both immediate and long-term tax exposure.
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