How is the IRS Helping Small Business?
The IRS is working to make taxes more understandable and compliance easier for small–business owners.
Getting answers
About 80% of small businesses rely on tax practitioners to complete their returns. But questions arise throughout the year on how to handle various situations. Owners can turn to their tax experts and pay their fees or may find the answers they seek from the IRS for free. Small–business owners can find quick answers to common questions through the IRS Web site created for the SB/SE Division (see www.irs.gov/businesses/small/index.html). For example, information for starting, operating and closing a business, as well as obtaining an employer identification number (EIN) is a click away.For information not provided on the Web site, owners can call the IRS at 1–800–829–4933.
Filing returns and paying taxes
Filing returns electronically can save business owners time and money, ensure accuracy and provide peace of mind. Now all business income tax returns can be filed electronically. Employment tax returns (Forms 940, 941 and 944) can also be filed electronically. Paying taxes online can be a help; you can schedule payments in advance and verify that they have been credited to your account. Go to www.eftps.gov. Note: EFTPS Express Enrollment is open to all new businesses when applying for employer identification numbers. These businesses will automatically receive by mail their EFTPS Personal Identification Number (PIN) and instructions for activating EFTPS enrollment.Staying compliant
A key goal of the SB/SE is helping taxpayers to comply with their tax obligations. Toward this end, the IRS offers a number of useful options:- Virtual workshops, where small–business owners can take any or all of 40 modules, on such topics as setting up a business, payroll and estimated taxes, at their convenience. These online modules can be accessed 24/7 (at the SB/SE Web site, go to "online classroom").
- Small Business Resource Guide, a CD–ROM from the IRS, SBA and other federal agencies that is updated annually to provide a wealth of accessible information.
- Local workshops conducted in conjunction with local chambers of commerce, CPA societies and the National Federation of Independent Business (NFIB).
Looking ahead
Expect to see a continuing growth in e–services that can benefit small businesses. The IRS is also working at burden reduction to cut the time it takes to complete and file returns. For example, it has already provided a recordkeeping. Instead of for child care providers instead of tracking every meal and snack given to children in their care. And businesses with up to four vehicles are now permitted to use the IRS standard mileage rate when deducting car expenses — a simplification benefiting up to 800,000 small businesses. Look for possible timesavers for small business in the future, such as claiming a standard deduction for home office expenses in lieu of itemizing them.LIMITATIONS. The information contained in this article is for general guidance. Such information is provided on a blind-basis, without any knowledge as to your industry, identity, or specific circumstances. The application and impact of relevant laws will vary from jurisdiction to jurisdiction. There may also be delays, omissions, or inaccuracies in information contained in this site. The information on this site is provided with the understanding that Staples.com and its affiliated entities, and various authors and publishers providing such information are not engaged in, and that providing such information does not constitute the rendering of, legal, accounting, tax, career, or other professional advice or services. As such, information on this site should not be relied upon or used as a substitute for direct consultation with professional advisors. Please refer to our Legal Terms and Conditions for further information.
