Deadline Passed The deadline to pay and file your taxes was already one week ago. Deadline passed, but this isn't the end of tax season, especially for Small Business owners. This year forward, the IRS will keep a close eye on Small Business Reporting.
Increased Collections Budget Despite their claims to become "Kindler" and "Gentler" the IRS is increasing their collections budget for 2009. In addition to the budget increase, the new budget for FY 2009 indicates the IRS's plans to target small business for revenue.
Targeting Your Business The IRS estimates that small business owners are the largest component of the $343 billion tax gap. This means they're after you! The IRS plans to increase enforcement initiatives to improve revenue reporting for Small Businesses and Self Employed individuals.
Preventing IRS Trouble
Hire an accountant: I often suggest working with a CPA or a reliable accountant. This is the best way to keep you from facing IRS issues in the future.
Pay the IRS first: You might owe everybody, but the IRS is only one that counts. Your credits might call you and annoy you, but the IRS will shut you down. So pay them first and foremost!
Stay in compliance: When you're a new business it is really tempting to use the payroll tax withholdings to make improvements to your business...BUT DON'T DO IT. Pay your payroll tax on time every time if you don't want to face devistating results.
Professions at risk of an audit Several professions have a high risk of being audited and eventually owing the IRS. These include:
- Doctors and dentists
- Attorneys and accountants
- Cash Intensive Businesses
Professional Help If doing all the IRS dirty work yourself is overwhelming, consider hiring a tax resolution professional to assist you with the process. That way you can focus on running your business.
Labels: Business Tax