Tag Archives: IRS

NSBA Survey on Small Business and Taxes

The National Small Business Association (NSBA) released the 2011 Small Business Taxation Survey. This survey provides detailed insight on how America’s small-business community is being impacted by federal taxes. In short: complexity and inconsistency with the tax code are depleting small businesses of their time and money merely so they can handle the administration of federal taxes.

“One in three small-business owners spends two full work weeks every year dealing with federal taxes, and the overwhelming majority (87 percent) are forced to pay an outside accountant or other tax return preparer,” stated Larry Nannis, CPA, NSBA chair and shareholder at Levine, Katz, Nannis + Solomon, P.C. “The federal tax code is a massive resource drain for small businesses.”

Payroll taxes were ranked the most burdensome taxes—both financially and administratively—for small businesses. Only 44 percent of small businesses report using an external payroll company, and even those that do report a significant amount of time dedicated to dealing with payroll taxes.

Given the relatively high number of small businesses that handle payroll internally, it’s no wonder that the majority (63 percent) said the new W2 reporting requirement, beginning in 2012 that will require employers to report health care spending, will have a negative impact on their business.

Compounding matters, IRS audits of small businesses and funding for enforcement activities continue to rise despite new research that shows the IRS misappropriated an undue responsibility of the tax gap upon the small-business community. Illustrating this growing fear and mistrust small-business owners have for the IRS, less than half (47 percent) of eligible small-business owners utilize the home office deduction, primarily due to concerns it will “red-flag” their return for an audit.

“The time for a serious debate on broad tax reform is now,” stated NSBA President Todd McCracken “The ever-growing patchwork of credits, deductions, tax hikes and sunset dates is a roller coaster ride without the slightest indication of what’s around the next corner. This is unsustainable and unacceptable.”

Given that 83 percent of small businesses are pass-through entities and pay business taxes at the individual income level, the majority support proposals that would reduce the corporate AND income tax rates and eliminate certain deductions, as well as sweeping reform in-line with the Fair Tax.

Tax Day

By Congressman Steve Austria

Because today is the day Americans are required to have their tax returns mailed back to the government, I thought I would take the opportunity to share some thoughts on taxes with you. When it comes to the U.S. Tax Code, the numbers are simply astonishing. The most recent tax code has more than 3.8 million words in it. The most recent version of the IRS regulations contained nearly 7 million words – 9 times the total number of words in the King James Bible. No wonder most Americans are frustrated with our tax code. Trying to complete a tax return is so complex that many must rely on an accountant or computer software to make it easier.

These are troubling statistics for most Americans. Additionally, more complicated tax increases may be imposed on taxpayers in 2012 if Congress does not permanently end the crushing tax hikes. Because Congress and the President only agreed to a temporary two-year extension, we are in jeopardy of seeing those tax hikes again in a year and a half. This continues to bring uncertainty to our financial markets, hurting small businesses and hard-working families.

Like most Americans, I believe the current tax code needs to be simplified and reformed. In the end, I trust our families and our small businesses – the taxpayers – to spend and invest their money back into their economy creating long-term sustainable jobs in the private sector. That is what will get Americans back to work. I’m pleased that this new Congress is placing a high priority on reducing federal spending to help put our economy back on a fiscally-sustainable path forward. It is time for Congress to work together on both sides of the aisle to simplify and reform our tax system.

T-Day Coming Soon (that is tax return deadline)

The dreaded tax day soon approaches. Do you have your records in order? Have you received your W-2s, 1099s, and other related reports your smiling IRS agent will looking for when you are audited?

Have you received a 1040 booklet and forms or your 2009 tax preparation software? Of course, you may still be waiting on an appointment date from your accountant.

April 15th cometh soon. The day of gloom and IRS doom. For some it might even be a day portending a bright glimmer of anticipation for a large refund. Whatever the case, the taxman cometh soon.

America is particularly blesses to have a paternal sugar daddy on Capitol Hill who promises at least a small refund of our collective taxes that were forced from our paychecks at the point of the big guns of Congress’s Internal Revenue Service (IRS). Think of the IRS as comparable to the Secret Service i.e., CIA, FBI, etc.

There are some unfortunate saps who Mr. Sugar Daddy doesn’t like. They include those who earn more than $250,000. If you are among that group, Mr. Sugar Daddy intends to keep all of your taxes money that your lawyers and accountants can’t find loopholes in which to hide it. (Hint: His associates in the Big Parlor on the Hill included.)

That reminds me: How can Mr. Sugar Daddy and his officious associates pontificate from the very place where Thomas Jefferson attended service every week in honor of God, truth, morality, and justice while dishonoring our nation’s Provident God, deceiving the public with every other unread bill, legislating immorality, and robbing the poor and not-so-poor.

Anyway, you are fortunate if you live in Xenia. Even though 60+ percent of local taxes go to education (which some say is less than adequate), the tax rate is relatively lower than most neighboring communities. At least that is what some elected official say. After May, that status may change. Nevertheless, Xenia is still known as a community with a low tax rate and low housing costs. Those are among the reasons Xenia was known place to get a start in life.

You are also fortunate to live in Xenia because the city offers tax preparation and paying information and tools to assist citizens pay the right amount on time. I can assure you, the city is dedicated to helping you to contribute to the city tax funded services. If paying on time is not possible, the City offers an extension.

You can find the City’s helpful information and tools at City of Xenia Income Tax Division webpage.

I almost forgot. As the City’s webpage reminds us, your Xenia Community School income tax filings and payments are made directly to the State of Ohio, not locally. The reason behind it is two-fold: (1) In a semi-socialist state, dollars flow to the central government and is disbursed in accordance with state dictates, which sheds some light on what slice of the equality pie education serves the semi-socialist state. (2) Dollars flow to power, and public education serves to indoctrinate the people according to the dictates of the State; in this case egalitarian socialism or statism as some call it. That also is why separation of religion and state (or church and state as it is also called) is so important a dogma.

The Ohio School Income Tax webpage is http://tax.ohio.gov and the Federal income tax forms, instructions, and payment methods are at http://www.irs.gov.