According to the IRS, U.S. taxpayers and businesses spend about 7.6 billion hours a year complying with the filing requirements of the Internal Revenue Code. Tax season can be particularly overwhelming for small business owners. Here are tips to help you get focused on the task at hand.
Use Tax Preparation Tools
There really is no reason to go it alone. Financial experts, the U.S. Small Business Administration, and the IRS, have spent years developing robust tools to help small business customers tackle the arduous task of accounting and taxes. Here are some great tools available to assist:
As a word of caution, it’s important to remember that simply handing your financials over to your CPA for preparation and filing does not protect you from the long arm of the law. As a small business owner, it is ultimately on you to review, and approve, your tax filings, so if you hire a tax professional to do your filings, take the time to review and ask questions if you have any concerns.
Avoid Common Small Business Tax Mistakes
Tax season brings with it a sense of urgency and pressure, and mistakes inevitably follow. Tax deductions go unclaimed, paper trails go awry, and costly mistakes inevitably follow. Here are some of the most common tax preparation mistakes that small businesses make, and some tips to help you avoid them.
Carry Forward the Health Credit
The healthcare tax credit is offered on a sliding scale. Businesses that employ fewer than 10 full-time-equivalent employees with average wages under $25,000 per person get the most benefit. To claim the credit, use form 8941 to calculate your eligibility. If your business did not owe taxes in that year, you may be able to carry the credit forward. If a remainder of the tax premium exists, you can claim business expenses against it.
It pays to make your taxes a priority. While these tips can help you prepare for tax season, you should always consult a tax professional or the IRS if you have any questions.
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Note: Information provided by Breakout Capital is not legal, tax or accounting advice. Businesses should consult their tax advisors, or other appropriate experts, concerning the application of tax laws to their particular situations. The information provided is offered in support of the 2015 calendar year.