Did you know the U.S. tax code is over 75,000 pages long? The core Internal Revenue Code alone runs more than 4 million words — plus thousands of pages of rulings and updates layered on top.
Here’s the problem: most CPAs and tax preparers are trained to be tactical, not strategic. They look backward, recording what you did last year, instead of planning ahead to help you keep more of what you earn.
That’s why 93% of small business owners overpay their taxes, according to Forbes and other industry research. This number hasn’t budged in over a decade — and for too many business owners, that means tens of thousands of dollars lost every single year.
So how does this happen?
The CPA Compliance Trap
There are more than 1.2 million accountants in the U.S., and most do great work keeping you compliant — making sure the IRS stays off your back. But a GAO study found that more than 2 out of 3 taxpayers miss deductions or credits they legally qualify for, simply because no one takes the time to look deeper.
Your CPA may file everything perfectly — but if they aren’t meeting with you proactively before December 31st to design a plan, you’re probably paying more than you should.
Passive Owners Leave Money on the Table
A 2022 NSBA survey shows that 40% of small businesses spend over 80 hours a year just dealing with federal taxes. But most of that is paperwork — not smart strategy. The average small business overpays anywhere from $11,000 to $35,000 per year, money that could fund retirement, hire staff, or fuel growth.
Owners who keep more are the ones who ask better questions and work with the right strategic partners.
The Treasure Chest of Overlooked Credits
Did you know 85% of small businesses miss credits they qualify for? The R&D Tax Credit — around since 1981 — is available to small firms that innovate or improve processes, but only 1 in 20 eligible firms claim it.
Hiring? The Work Opportunity Tax Credit can put $2,400–$9,600 back in your pocket for each qualified hire. And the Section 199A deduction can cut taxable income for many pass-through owners by up to 20% — but only if you plan for it.
These aren’t loopholes — they’re legal incentives to help your business grow.
Turn Taxes Into Profit
Taxes shouldn’t be a once-a-year event. Smart owners treat taxes as a 12-month profit strategy. The SBA says that the average small business reinvests 70% of every tax dollar saved directly back into hiring, equipment, and growth.
Plan your entity structure. Time big purchases wisely. Combine your owner salary with retirement plans. Protect your legacy with succession planning. This is how you move from reactive to proactive — and legally join the 7% who keep more.
Ready to flip the script?
Join me, Dr. Drew Stevens, at my Social Security & Tax Reduction Seminar at St. Charles Community College, July 15th or July 17th. I’ll show you how to protect your retirement and stop overpaying the IRS — with strategies you can start using right away.
Reserve your seat at www.wisdomtowealth.com or call 636-537-7851 today.
If this helped you, please share it, leave a comment, and pass it on to another business owner ready to join the 7% who keep what they’ve earned.
Your wisdom is your wealth — let’s protect it together.
