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Just gonna say you know it.
You think it's hard for yourself or for you or I to do our own taxes out of your small business owner of your company.
Trying to do taxes it's pretty difficult so we have a special best and needs to Bill Smith director of the national tax office -- -- incorporates.
Corporate joins us right now welcome -- -- Thank you very much let me tip my cap to you for coming in on a day like today when you guys are actually socked in with snow we certainly appreciate it down there in DC.
-- taxation never takes a break is certainly in -- at this you know juncture in our lives so we've got to talk about it and small businesses and you know this year what's what's -- that's the thing we're focusing on the most.
What is new floor filing for 09 that small businesses didn't have to deal with in 2008.
One of the things you -- to be careful about is record keeping because the IRS has.
Added a huge amount of money to its budget for what it likes to call -- search in the way the IRS likes to conduct research -- -- a lot of so we're going to see a lot of increased audit activity.
And what that means is you want to get your records.
In shape right now rather than waiting until the -- happens.
Next year or the year after and -- and reconstruct her records -- record keeping is always going to be important any tips for doing.
-- you want to not be terribly aggressive in the areas where you think you may have spent something that might be deductible.
You want to make sure your bookkeeping is an order work with your CFO if you have one with your controller and make sure that.
You have your financial statements even if you're not an audited financial statements.
And just make sure you have the documentation.
Bill I don't have I don't I know that when people -- -- in states more when state tax rates go up people tend to lead in droves.
I would assume that people also tended to see more.
Tax rates go up on this -- at a site is it about simply read the IRS how how are they stepping up or are they stepping up their auditing.
And they absolutely are stepping up there auditing and now we like to call that being a little more aggressive not cheating you're not a -- The audit activity is being stepped up and of course as people looking at tax rates going up.
You want to be careful about making sure you're taking the deductions you're entitled to.
The IRS can be the opposite of aggressive very conservative on what they think you should be entitled to -- -- wanna make sure.
Your positions are solid but just because the I -- might take a position to the opposite end of where you are you shouldn't necessarily forgo your deductions.
And it in also say one of the tips here.
About paying year end bonuses -- a -- -- A lot businesses struggle to no wind to actually pay out their bonuses.
Any tips you can -- there.
Permitted if you if you fix the bonuses by year end -- permitted -- avoid paying them until March 15 if you gotta paid by march 15.
They can be deductible in the prior year however you have to make sure.
That you don't have any contingencies attach to that.
Florida State coach Bobby Bowden once said when you run on the safety blitz -- can't might get -- get the quarterback he's got together.
And the IRS's followed up with that saying if you're gonna wait until March 15 the -- last year's bonuses you can't might gonna pay you have to make sure you bam.
Or -- -- coach Bowden also said if we score more than they do we had a chance to win it but that was -- I was one of the more of really quotes from -- coach absolutely you know the other things that we talk about State's estate tax is way they look into.
Squeeze blood at every stone out there the states.
How do you as a small business make sure that your your handling your taxes right if you do business across state lines well businesses.
Often overlooked the issues involved with state taxation because the rates are lower than the federal tax rates.
And even advisors overlook.
That it that issue with small businesses often and so if you have a multi state business.
The business you want to make sure that you're filing in the right states.
And you -- -- have a nexus study done you want to make sure if you have a nexus in a particular state you are filing there.
That way you're dividing up a 100% of the income among the states.
Don't file in a state where you should file they can come back after you and you can end up paying tax to two different states on the same income.
I still say the number one -- for taxes whether it's an individual or company is don't procrastinate right.
Procrastinate she is typically bad thing when it comes to taxes we all like to do it but the sooner you start the better your records in the more likely yard to have a tax return to get you the best result I've not met director -- -- -- tax profits of eBay is.
Very important points that you may thank you so much for joining us our pleasure to be here thank you.
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