Tax filing season has arrived – and it is the time of year when accountants usually become a bit more “popular” with my friends. But in case you aren’t lucky enough to have an accountant as a friend, it is important that you know how the new tax law affects your small business.
This is the first filing season after the recent comprehensive tax reform, and the changes impact nearly every taxpayer across the country. If you have not already filed, it could be helpful to know more about the changes and how your business is affected. The IRS has prepared a number of helpful news releases, guides, tutorial videos and webinars to help small businesses navigate the new tax law.
It can be daunting to begin filing your taxes, but a good place to start is the “Tax Reform for Small Business” page on the IRS website. From there, you can learn more about withholding, deductions, the employer credit for paid family and medical leave, opportunity zones and much more. Each section has a dropdown menu so you can click on specific topics you are interested in. The page also includes a list of helpful resources and upcoming webinars.
The IRS created a side-by-side comparison chart for small businesses that outlines many of the changes under the recent tax reform. It includes information about changes to deductions, depreciation, expensing and much more. One important change is a deduction of up to 20 percent of qualified business income for many small business owners. The IRS put together a page for frequently asked questions to help determine if your business qualifies for this deduction.
A highlights page on the IRS website includes a fact sheet that summarizes changes businesses will see this year. It explains many of the new laws and provides links to pages with more information. Understanding these changes can help businesses plan accordingly.
“I know tax season can be a stressful time of the year, especially if you are unfamiliar with the laws, but looking at some of the guidelines the IRS has provided may make it a little easier. There are plenty of additional resources out there like preparation checklists and calendars of due dates. Knowing the current tax law and how it impacts your small business can help make tax season smoother. If you have already filed your taxes this year, these resources and guidelines can be helpful in the years to come to make sure you are taking advantage of the benefits provided by the new tax law.” explained Senator Mike Enzi.