Did you know that the current US Tax Code was written to favor the small businesses? That actually makes sense when you think about it. In 2019, there were 30.7 million small businesses in the U.S. which accounted for 99.9 percent of all U.S. businesses. And this sector created 1.5 million jobs – representing 64 percent of job growth for the year. So small businesses have more than heart. They have a major impact on the health of the US economy.
These companies typically face more cash constraints than large corporations – especially the public ones – and that has a definite impact on hiring. When more hiring happens, more people pay income taxes, so it is in the best interest of the treasury – and the overall US economy – to make it possible for small companies to maximize their hiring. These businesses are driving GDP so they are paying a lot in taxes too, and sometimes they are paying more than they need to.
IRS Guidance And Information
The IRS provides a lot of information about what a company can and cannot do to reduce their taxes, but they don’t always post everything you need to know about taxes and legitimate deductions. Instead they provide numerous publications and tax guidance documents that each address a specific topic or set of topics. They really are written to help you – if you know what you need to look for, and understand the guidance the documents provide. The IRS guidance, while helpful, can also be confusing.
The information the IRS releases is not very specific either, since the guidance needs to explain what applies to all taxpaying organizations not just to your company. Applying the guidance and regulations to your company’s financial profile is how to reduce your tax burden. That’s where a good Certified Tax Coach comes in. We can help ensure you can take advantage of the deductions and tax breaks you are entitled to, and ensure your accounting records support those deductions in the event of an audit.
The Role Of A Certified Tax Coach
Certified Tax Coaches spend extra time learning about tax code and how to apply it, so we are uniquely positioned to help your company pay only what you need to pay, which is frequently less than what we find our clients have paid before working with us. A general accountant typically takes an historical look at your company’s finances. What they account for has already happened. And they cannot change history.
Certified Tax Coaches take a forward-looking approach, and help you plan the business actions you take to maximize your deductions before you take those actions. You cannot claim a future deduction or exempt future revenue. We create a tax plan to run your business by before you file, helping reduce your taxes.
Are you paying too much in taxes? Give me a call and I will provide a complimentary look at your return from last year to see if you were one of the many small business owners that overpaid taxes.