Just preparing for tax season can feel a little daunting. The process can be complex and downright confusing. According to Westfair Online, the IRS just wants to help small businesses understand what they need to do.
One of the chief improvements is a special website, www.irs.gov/smallbiz. This is a great place to give yourself a tax smarts tune-up. And what could be more authoritative than information coming from the chief tax honchos themselves? Take the time to understand this great resource.
There’s also help answering a key tax-related question: Is what you are doing a true business or merely a hobby? If the IRS decides your “business” is really just a hobby, your expenses may not be deductible. Look for their nine-point checklist to see how you stack up. Also visit the Industries/Professions section for specific information about tax regulations that may apply to your type of business.
For the self-employed and independent contractors, there’s a full section that covers filing requirements, when a tax identification number is necessary, a listing of special publications and forms, responsibilities associated with operating and closing a business and other valuable information.
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