All of this makes the risk of a small firm paying penalties for misrepresenting its tax liability a serious concern. The issue is that entrepreneurs fearful of being audited often avoid legitimate deductions in an attempt to be as conservative as possible, giving away their sorely needed capital in the process. No verifiable statistics exist to indicate exactly how much entrepreneurs are overpaying in taxes or what is leading to the overpayment; however, several steps are consistently cited as being overlooked by entrepreneurs when filing their annual taxes concern. The issue is that entrepreneurs fearful of being audited often avoid legitimate deductions in an attempt to be as conservative as possible, giving away their sorely needed capital in the process. No verifiable statistics exist to indicate exactly how much entrepreneurs are overpaying in taxes or what is leading to the overpayment; however, several steps are consistently cited as being overlooked by entrepreneurs when filing their annual taxes.