During National Small Business Week, the IRS highlighted some available resources for small business owners and self-employed individuals, including tax advice and tools for online learning, to help with potential tax questions for the upcoming tax year. Below are some of the major points covered as a quick reference for you.
Are your clients withholding enough?
With the onset of the Tax Cuts and Jobs Act, taxpayers may need to change their tax withheld to reflect a new tax liability amount. It is important for you to help keep your taxpayers informed and ready for the upcoming tax season. You can help by encouraging all taxpayers to visit the IRS Withholding Calculator for a ‘Paycheck Checkup’ to verify their withheld amount is not too much or too little.
Although we encourage all taxpayers to check their withholdings, the IRS believes specific taxpayers will be affected if they:
- Are a two-income family.
- Work more than two jobs, or only worked for part of the year.
- Have children and claim credits such as the Child Tax Credit.
- Have dependents, including children, 17 or older.
- Had itemized deductions on their 2017 tax return.
- Have higher income, or have complex tax returns.
- Received a large tax refund or bill for 2017 taxes.
If changes need to be made to a W-4, please have your clients submit the updated form to their employers as soon as possible.
Don’t leave your clients with a tax bill next tax season! Help them get the best refund possible by being informed. The IRS has provided resources to help you better understand the Tax Cuts and Job Act and how it affects tax withholdings.
For Tax Tips, please visit the IRS Tax Reform Tax Tips page.
Small Business Owners may be at risk for Identity Theft.
Over the last two tax years there has been a rapid increase of tax fraud for Business Returns. This includes Forms 1120, 1120S, and even Schedule K-1. This causes complications for the business and its owner as well as complications for you as the tax preparer. As tax preparers, it is important for you to provide any additional information that will help verify the legitimacy of the business return including:
- Name and SSN for who signs the return
- Tax payment history for the company
- Any parent company information
- Additional information for deductions that are claimed
- Tax filing history for the company
For more information on preventing security threats, we encourage taxpayers and preparers to visit the IRS Identity Protection: Prevention, Detection and Victim Assistance page.
IRS Small Business and Self-Employed Tax Center
This page is the central hub for all your small business tax questions! Here you will find things such as:
- Tax information for taxpayers who are considered Self-Employed or Independent Contractors.
- Tax information for anyone who takes part in the Sharing Economy.
- Filing requirements for certain business returns.
- Business Tax Credits and Deductions.
- A-Z Index for all tax questions and concerns.
This website is a useful resource for anyone who will prepare business returns in the upcoming tax season. To visit the Small Business and Self-Employed Tax Center please click here.
Online Learning for Tax Preparers
Are you more of a visual learner? The Online Learning and Educational Products page on the IRS website will provide you with links to a number of resources to help further your understanding of business tax returns. Here you can find the IRS Video Portal, The Virtual Workshop, and Basic Tools for Tax Professionals.