Optima Tax Relief Reviews IRS Resources to Help Small Business Owners
The IRS has put out a variety of resources in order to assist small business owners, which includes veterans, understand their tax responsibilities when it comes to the IRS. Many of the resources that are offered to taxpayers can be found online on the IRS’s website.
Optima Tax Relief reviews resources that small businesses should consider when filing their taxes.
Hire the right accountant
The accountant that you hire should be able to do more than just preparing and filing your financial statements and taxes. Your accountant should work throughout the tax year in order to track income and expenses for the business in order to ensure that there is not a cash flow problem and to monitor both gross and net profits.
Make sure to claim all income that is reported to the IRS
The IRS will receive copies of 1099-MISC forms that are also sent to contractors in order to ensure that all income that is reported on a tax return is accurate. It is important to report all income accurately and that it matches the IRS records to avoid any discrepancies that may delay the processing of your tax return.
Keep proper tax records
Organizing and storing tax records throughout the year will ensure that a tax return is prepared accurately and that all minor mistakes are avoided. Having missing records could lead to a taxpayer missing out on credits and deductions or even putting themselves at risk for a possible audit if they leave out important information.
Classify your business
If you fail to properly classify your business, it could result in an overpayment in taxes. You will need to decide whether to classify your company as a C corporation, S Corporation, Limited Liability Partnership, Limited Liability Company, Single Member LLC, or Sole Proprietor because all will have a different effect on taxes. If you are looking to state a business or currently have one, it is important to consult with an attorney and accountant to determine how your business should be classified.