The IRS Helping Small Business People?

People usually deal  with the IRS as they would their proctologist, they avoid both so not to take it in the end.   What many don’t know is that the IRS actually has a good website that helps small business among other taxpayers.  Unlike IRS telephone advice, you can depend on the information you learn from their website. They are designed to make the tax code simpler(well, not really, but I live in a fantasy world.)

1. Health Insurance Deduction Reduces Self Employment Tax — If you are self-employed and have a qualified health insurance plan, now not only can you deduct the premiums from income tax, but also self-employment tax.
2. Small Business Health Care Tax Credit — Small qualified small businesses can claim a health care insurance credit from 2010-2013.
3. General Business Credit for Employers — The new law allows this credit to be offset against both regular and alternative taxes.
4. Small Businesses Can Benefit from Higher Expensing / Depreciation Limits –Consider accelerating your depreciation deduction of your asset purchases.

As you approach your tax filing deadline, keep these in mind when you visit your CPA.  The IRS, though, is not the place to go to get tax advice.  They are good at helping you with tax problems, but not tax law.  Studies have shown that your answers vary depending on who you speak with at the IRS.

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IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the U.S. Department of the Treasury and Internal Revenue Service, we inform you that any tax advice contained in this e-mail (including any attachments) is not intended or written to be used, and may not be used, for the purpose of (a) avoiding penalties under the Internal Revenue Code or state tax authority, or (b) promoting, marketing, or recommending to another party any transaction or matter addressed herein.