Small business owners have major tax filing deadlines on the horizon, which are March 15 or April 17 for many of them. If everything is going according to plan, they have now figured how to tackle the Tax Cuts and Jobs Act of 2017. Ideally, they paid the right amounts or perhaps they will even get a refund. Nevertheless, there is always ways to do better, so we now offer some tax tips for small businesses as they go through the second year of the new system.
It is generally recommended to work with a CPA and/or a tax attorney, but these tips are directed to owners and managers out there to help ensure the business is compliant and run with efficiency:
- Taxes are a year round concern: Tax planning needs to be an ongoing concern rather than something only addressed as deadlines approach. Last minute scrambles to meet deadlines mean more stress and complications as well as fewer money-saving options to explore.
- Stay up to date: Piggybacking on the above, it is smart to monitor tax issues in the news and discuss any opportunities with a knowledgeable tax professional.
- Assumptions lead to mistakes: Tax planning involves some guesswork, nevertheless it is a mistake to make business or tax decisions based on the possibility of laws changing, changes in policy or potential tax breaks. Miscalculations can lead to audits, liens and other problems that cost more than paying the correct amount in the first place.
Legal help may be necessary
Those who have a dispute with the IRS over their calculations would be well served by contacting a tax attorney who can work with the IRS help secure a fair and equitable solution.