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business tax filing - Complete Controller

Are you confused about how the new tax laws will affect you? You are probably not alone, as many people are looking for legitimate answers. With the ink barely dry on the new tax laws, ambiguity proliferates what to do or what to ask a tax consultant. Before collecting your box of receipts and making a trip to the accountant, it requires you to know specific details that will make business tax filings a lot more bearable.

People might ascertain that with the tax reform bill’s approval last December, the changes have taken effect, and they will need to fill out the forms for the next few months accordingly. However, the 500-page law largely affects 2018 filings and not what’s payable for 2017. Check out America's Best Bookkeepers

Key Highlights of the New Tax Bill

While maximizing deductions for 2017, such as paying valued property taxes for the next year and increasing charitable donations, there is a modification that some can still cash. This is related to a retroactive plummeting of the limit for medical bill deductions. For 2017, if your medical bills are above 7.5% of your income, you are allowed to deduct them from your business tax filings. This percentage is a considerable drop from the previous limit, which stood at 10%.

For small businesses, the changes are not as simple as the information is not yet clearly provided. The treasury department has stated that some service-oriented businesses, such as bookkeeping and law firms, are not eligible for tax reductions for limited liability companies. They typically pay their taxes on the personal tax returns of the owners. However, it is not clearly defined which types of service-based businesses are liable to follow this clause. This clause is to be clarified somewhere later in the year. Check out America's Best Bookkeepers

Your paycheck will Increase, but is that a Good Thing?

Around 90% of Americans will see a rise in their paychecks, which should be considered good news. But, not for long, as employers will adjust employee withholdings under the new law. A change in the IRS withholding table, which guides employers to deduct from employee’s paycheck, is responsible for the adjustment. This responsibility means that taxpayers should ensure the exact amount that is being withheld from their paycheck as they do not want to own the IRS at the end of the current year. This change will significantly affect business tax filings for the vast majority of the population in the upcoming year.

Slower Refunds

If you expect a refund this year, you might need patience as all federal returns filed by standard mail might be running late. However, it might not be such a significant issue for most citizens. However, low wage earners who rely on these refunds to pay their bills will get a setback. Therefore, you are better off filing electronically as electronic business tax filings are not expected to be delayed. Check out America's Best Bookkeepers

Watch Out for Scams and Quick Refunds

As mentioned earlier, taxpayers are expected to get slower refunds. Because of that, short-term anticipation loans are expected to be in higher demand. Therefore, it is advised by the Center for Economic Progress that it is probable that these loans will charge predatory rates. Taxpayers should avoid them as much as possible. Moreover, if an outside company offers you quicker refunds, the likelihood of a scam is quite imminent. You are also advised not to trust any phone calls that portray to be from the IRS as they will only ever reach out to you through the mail.

Following these guidelines for business tax filings will ensure that you end up with a lesser tax burden for the upcoming year.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

Midsection of tax auditor examining documents with magnifying glass at table in office
It is not a good news; the IRS has been rising again with a focus only on audits and collections. Another thing, it appears that a big focus is going to be on business owners. If you have been recently avoiding IRS notices regarding tax debt, you may want to think about taking numerous steps to resolve it. If not, your business, as well as personal life, might become a lot more complicated and stressful. Nevertheless, the IRS has huge powers, for instance, to seize the assets. Here are some of the steps, which can be taken with your IRS tax debt:

 

  1. Know Where You Stand

Carefully review all of your IRS letters along with your tax returns. It should not come as a surprise that the agency might have made some mistakes. This means that you might ultimately reduce the debt you have. Even though it is usually a good idea to get support from a tax professional, these potential savings you gain might be so much more than the fees that you are going to pay.

 

  1. Negotiate the Penalties

Tax penalties can spiral out of hand very quickly. This is the reason why you should act very swiftly when you deal with IRS debt. However, you might also be able to negotiate with your agency to lower and, sometimes, even eliminate the penalties, if you show reasonable cause. Examples of this can include serious illness, difficult financial circumstances, and/or the destruction of your home or the business you are running. The IRS, furthermore, has a program that offers relief to those who have gotten in trouble with the agency for the very first time.

 

  1. Payment Plan for Business Debt

After you know how much you actually owe, you can easily put together a working plan. One of the most common approaches is to set up an installments agreement. This arrangement might last for as long as 6 years (all payments should be made on a monthly basis with interest or the penalties will continue to accrue). Remember, this kind of an agreement is going to put a stop to actions such as liens and levies. If you are indebted to $50,000 or less, then this process is most likely to be forthright. This can be done online; however, you are going to be in compliance with the IRS, for instance having made the tax filings, deposits and the withholdings.

 

  1. Reduce Business Expenses

You should always take a look at your operating costs. Figure out the expenses you might be able to deplete versus the services required for the daily operations of the business. For instance, are you going to pay for a subscription which you can make use of infrequently? Are there some professional memberships which you can suspend temporarily until you get the financial house back in order? Consult a professional accountant or use accounting software to predict the financial impact it would have on cutting the costs.  

 

  1. Other Options

You have most likely seen TV advertisements where the representative makes the claim that you can settle your IRS debt at “pennies on the dollar”. Does this sound too good to be true? Yes, indeed this is most often the case. However, the IRS does have a thing called the “Offer In Compromise or the OIC. This allows you to pay off your business debt at a discount. This process involves releasing financial information with the forms 656 and 433. This will furthermore determine the amount which the IRS considers livable without causing financial restraints on the users. Please note, the IRS rejects numerous submissions. It is a very good idea to get the help of a tax professional who has the complete knowledge of filling paperwork along with navigating the IRS bureaucracy as well.  

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.