As we wrote in last week’s post, the IRS and financial professionals have warned that this year could be especially problematic when it comes to filing tax returns. In short, the Internal Revenue Service is under-funded and under-staffed, yet its workload keeps increasing. If you have tax questions for IRS employees this year, contacting someone may take significantly longer, and there is no guarantee that you will actually get someone on the phone.
This may not be much of a problem for individual tax returns – many of which are straightforward. But if you have started a small business in the last year, you likely have a lot of questions about tax compliance, including which taxes you must pay.
The IRS website offers general guidelines about business taxes, but these can only be so helpful. You may not know, for instance, whether you owe income taxes, estimated taxes, self-employment taxes, employment taxes or excise taxes. Which taxes you are expected to pay will depend on the nature of your business, how many employees you have and how you pay yourself and your employees.
It’s also important to understand which business and personal deductions you qualify for, because these can save you a lot of money. Did you know, for instance, that the standard mileage reimbursement rates recently increased?
Complicated tax issues can seriously hinder even the most promising small business. If you recently started a business and want to see it survive and grow, it’s a good idea to seek outside compliance help. An experienced tax attorney can ensure that you are paying the taxes you owe while taking advantage of all available credits and deductions.