There are a lot of benefits to starting a business, from tax breaks to the possible financial freedom it offers. With a strong steady surge in small business start ups, a lot of people and organizations are taking notice....even the IRS. So much so they (IRS) have hired over 2000 new employees in the State of Va alone to inform the tax preparer franchises of its responsibility to make sure small businesses are doing "the work". Tax franchises (H&R Block, Jackson Hewitt, Liberty Tax Service to name a few) Are being accessed up to $1000.00 per incident for knowingly reporting false data on a tax return. What does this mean for new or existing small businesses? Tax preparers may start turning away businesses with large losses with little to no documentation. Why? because they don't want to be responsible for information the small business can not prove.
So if a tax preparer can not prove your business did "the work" then you may have to file your own taxes.
No comments:
Post a Comment