1-800Accountant Survey Finds: Over Half of Small Biz Owners Admit Questionable Tax Deductions

Survey highlights confusion around common write-offs and ongoing tax anxiety for entrepreneurs.

Mar. 14, 2026 at 4:19am

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A new survey from virtual accounting firm 1-800Accountant found that 57% of small business owners admit to deducting a business expense they knew was questionable at the time. The survey of over 300 U.S. small business owners also revealed widespread uncertainty around common deductions like vehicle expenses, home office, and meals and entertainment.

Why it matters

The findings underscore the challenges many entrepreneurs face in navigating complex tax rules, especially as they juggle the demands of running a small business. This confusion can lead to costly mistakes or missed deductions, adding to the broader tax anxiety many small business owners experience.

The details

The 1-800Accountant survey found that over half (57%) of small business owners have claimed a questionable tax deduction, highlighting the gray areas and uncertainty many face around properly documenting common write-offs like vehicle expenses, home office deductions, and meals and entertainment. The survey also revealed small business owners' top tax season concerns, including paying more taxes than necessary, making mistakes on their returns, and fear of IRS audits.

  • The survey was conducted in early 2026.

The players

1-800Accountant

America's leading virtual accounting firm dedicated to providing small businesses with comprehensive financial services including tax preparation, bookkeeping, payroll, and year-round tax advisory.

Ryan Teeples

Chief Strategy Officer at 1-800Accountant.

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What they’re saying

“Small business owners want to follow the rules, but the tax code can be incredibly difficult to interpret without professional guidance. When entrepreneurs are managing everything from operations to payroll, it's easy to see how gray areas around deductions can create confusion.”

— Ryan Teeples, Chief Strategy Officer (Business Wire)

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

— Ryan Teeples, Chief Strategy Officer (Business Wire)

What’s next

1-800Accountant is offering a free tax preparation quiz to help small business owners assess their readiness for the upcoming tax season.

The takeaway

The survey findings highlight the need for small businesses to seek professional accounting support to navigate the complexities of the tax code, claim all eligible deductions, and minimize the risk of costly mistakes or audits.