1-800Accountant Survey Finds: 57% of Small Business Owners Admit Taking Questionable Tax Deductions

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NEW YORK--(BUSINESS WIRE)--Mar 14, 2026--

A majority of small business owners admit they have claimed a tax deduction they believed might not fully qualify, according to a new national survey conducted by 1-800Accountant, America’s leading virtual accounting firm for small businesses.

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A bar chart visualizing the responses to the question "Have you ever deducted a business expense you knew was questionable at the time?" Over 300 small business owners took the survey, and 57% responded with either, "Yes, Once" or "Yes, More than Once."

The survey found that 57% of small business owners say they have deducted a business expense they knew was questionable at the time, revealing the extent of uncertainty many entrepreneurs face when navigating complex tax rules.

The study surveyed over 300 U.S. small business owners about their tax habits, fears, and preparation strategies during tax season. Curious how prepared your small business is for tax season? Take the free quiz here.

“Small business owners want to follow the rules, but the tax code can be incredibly difficult to interpret without professional guidance,” said Ryan Teeples, Chief Strategy Officer at 1-800Accountant. “When entrepreneurs are managing everything from operations to payroll, it’s easy to see how gray areas around deductions can create confusion.”

Common Business Deductions Still Cause Confusion

Beyond questionable deductions, the survey also revealed that many entrepreneurs remain unsure about common business write-offs.

Among the most confusing deductions cited by respondents:

• Vehicle expenses and mileage
• Home office deductions
• Meals and entertainment expenses

These are some of the most widely used deductions for small businesses and freelancers, yet many business owners report uncertainty about how to properly document and claim them.

Tax Anxiety Remains High for Entrepreneurs

The survey also highlighted the broader stress tax season creates for small business owners. When asked about their biggest concerns during tax season, respondents most frequently cited:

• Paying more in taxes than necessary
• Making a mistake on their return
• Being audited by the IRS

“Many business owners worry about overpaying or making costly mistakes,” said Teeples. “The right accounting support can help ensure entrepreneurs claim every deduction they’re entitled to while staying compliant.”

Helping Small Businesses Navigate Tax Season

1-800Accountant provides entrepreneurs with year-round support from experienced accountants and accounting professionals who specialize in small business tax planning. The company offers a full range of services including tax preparation, bookkeeping, payroll support, and ongoing advisory.

By combining experienced accountants with modern technology, the firm helps business owners simplify financial management, stay compliant with tax regulations, and focus on growing their businesses.

Survey Methodology

The survey was conducted among 300 U.S. small business owners who manage or operate a small-to-medium-sized business. Participants were asked about their tax preparation habits, deduction practices, and overall tax confidence.

About 1-800Accountant

1-800Accountant is America’s leading virtual accounting firm dedicated to small businesses. The company provides comprehensive financial services including tax preparation, bookkeeping, payroll, business formation, and year-round tax advisory. By pairing experienced accountants with modern technology, 1-800Accountant helps entrepreneurs simplify accounting, maximize tax savings, and focus on growing their businesses.

View source version on businesswire.com:https://www.businesswire.com/news/home/20260312561141/en/

CONTACT: Media Contact:

Wyatt Johnson, Content Manager at 1-800Accountant

920-807-9159

[email protected]

KEYWORD: NEW YORK UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: SMALL BUSINESS ACCOUNTING PROFESSIONAL SERVICES

SOURCE: 1-800Accountant

Copyright Business Wire 2026.

PUB: 03/14/2026 12:19 AM/DISC: 03/14/2026 12:19 AM

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