There is one big problem that new small business owners seem to face year in and year out – lack of information. Most new business owners, meaning those who file a Schedule C, Profit or Loss From Business, with their 1040 tax form, are unaware of many of the filing requirements that are necessary when operating a business.
But the IRS is stepping up to the plate and has launched a new campaign aimed at small business owners. Through the Internet (www.irs.gov), workshops and other educational materials, the IRS is attempting to educate new business owners so they will be compliant with all tax issues, by paying taxes properly and timely.
If you are a new business owner or are thinking about opening a business, you will want to pay close attention to this. The IRS is kicking off the campaign by offering basic tips on how to avoid some potential problems. These problems include, but are not limited to, incorrectly classifying employees, not filing federal employment taxes, not paying quarterly estimated tax payments, not keeping good records and not taking advantage of the electronic filing system.
Other tips the IRS will be sharing with new business owners are advising them to consider hiring a tax professional to help with their Schedule C, protecting financial and tax records in the event of a disaster, and avoiding abusive tax schemes.
If you are a new business owner and would like more information about the IRS’ recent campaign, visit the IRS website at www.irs.gov.
About Bill Lawitzke:
Bill began his stint with JK Harris in 2003 when he came to work with Small Business Services, LLC, where he is currently Vice President. He became an Enrolled Agent in 2007.