| For Small Business Week, IRS highlights key business tax topics WASHINGTON — In recognition of National Small Business Week, April 29 to May 5, the Internal Revenue Service is highlighting several resources to help small business owners and self-employed individuals understand and meet their tax obligations. The new tax law changes enacted in December 2017 make it especially important for these groups to know about new provisions affecting them... For Small Business Week, IRS highlights key business tax topics WASHINGTON — In recognition of National Small Business Week, April 29 to May 5, the Internal Revenue Service is highlighting several resources to help small business owners and self-employed individuals understand and meet their tax obligations. The new tax law changes enacted in December 2017 make it especially important for these groups to know about new provisions affecting them. During this week, the IRS will highlight various products including: · A series of news releases on various topics including the sharing economy, home office deduction, cybersecurity and the Work Opportunity Tax Credit. · Tax tips about business provisions under the new tax reform law. Topics will include tax law changes to depreciation rules and the employer credit for family and medical leave and how it benefits employers. Tax tips are written in plain language and can be subscribed to using the IRS’s Tax Tips email-subscription program. · Information for small businesses is also available through IRS social media channels including tax tips and other resources. Stay informed following the hashtag #IRSsmallbiz and help us spread these messages by sharing the @IRSnews, @IRSTaxPros and @IRSenEspanol tweets. Other small business resources The IRS encourages business owners to check out other webinars on the IRS video portal. The portal has presentations on a variety of small business topics. Business owners may also be interested in these sites:
More information Major tax reform was approved by Congress in the Tax Cuts and Jobs Act (TCJA) on December 22, 2017. The IRS has been working to implement its provisions and give information and guidance to taxpayers, businesses and the tax community as it becomes available. -30- IRS News Release - IR-2018-110, May 2, 2018 Media Relations Office, Washington, D.C. Media Contact: www.irs.gov/newsroom. 202.317.4000 Public Tax Questions: 800.829.1040 IRS highlights sharing economy tax center, other resources during National Small Business Week WASHINGTON — The Internal Revenue Service is highlighting a variety of online resources to help small business owners and self-employed individuals as part of National Small Business Week from April 29 to May 5. Some of these tools focus on an emerging area of business activity -- the sharing economy – also referred to as the on-demand, gig or access economy. People involved in the sharing economy engage in activities such as renting a spare bedroom, providing car rides or offering many other goods or services. Because there are tax implications for companies providing the services and the individuals performing them, the IRS has created special products to help these businesses and workers understand their tax responsibilities:
Check for proper tax withholding Taxes are pay-as-you-go. This means that people need to pay most of their tax during the year, as income is received, rather than paying at the end of the year. Because of the far-reaching tax changes taking effect this year, the IRS urges all employees, including those with other sources of income, to perform a Paycheck Checkup now. Doing so now will help avoid an unexpected tax bill when they file their 2018 taxes in early 2019. The easiest way to do that is to use the newly-revised Withholding Calculator, available on IRS.gov. In recent years, the IRS has seen an uptick in people subject to estimated tax penalties. These penalties normally apply when someone underpays their taxes. The number of people who paid this penalty jumped from 7.2 million in 2010 to 10 million in 2015, an increase of nearly 40 percent. The penalty amount varies, but can be several hundred dollars. The IRS urges taxpayers to check into their options to avoid these penalties. This is especially important for people in the sharing economy, those with more than one job and those with major changes in their life, like a recent marriage or a new child. There are two ways to pay tax: · Withholding from pay, pension or certain government payments, such as Social Security. · Making quarterly estimated tax payments during the year. More information about tax withholding and estimated tax can be found on the agency’s Pay As You Go web page, as well as inPublication 505, Tax Withholding and Estimated Tax. Other small business products The IRS provides an overview of other products to help small businesses in a YouTube video. Some featured products for small business owners and self-employed individuals are: · Small Business and Self-Employed Tax Center – an online resource featuring links to a variety of useful tools, includingSmall Business Taxes: The Virtual Workshop, a downloadable tax calendar and common forms with instructions. The Center provides help on everything from how to get an Employer Identification Number online to information and tips about IRS audits. · Self-Employed Individuals Tax Center – a resource for sole proprietors and others who are in business for themselves. This site has many useful tips and references to tax rules a self-employed person may need to know. · IRS YouTube Video Channel – with videos for small businesses. · IRS Video Portal – video and audio presentations on a variety of topics of interest to small businesses. · Online Learning and Educational Products – a page with tools to help taxpayers learn about taxes on their own time and at their own pace. For example, the IRS Tax Calendar for Businesses and Self-Employed has important tax dates for businesses. Download the Calendar Connector tool to get the dates even when offline. Published: 05/02/18 |