Over the last several weeks we’ve written a series of articles on our different Silkin Management Group blog sites covering some key tax related points that all small business owners, whether Silkin Management Group clients or not, should be aware of this year.
Previous articles have covered the following points: a) increased tax audits and b) some potential tax consequences of the federal health care legislation that will be ruled on by the Supreme Court this year, c) extensions of some favorable tax rules, d) federal, state and local governments on the look-out for new sources of revenue, e) the potential effects of the Presidential race and election, f) potential increases in unemployment taxes, g) possible changes in estate taxes, and h) the impact of lower interest rates on dealing with the IRS.
Today we’ll present the final two points in this series:
• Online filing of returns: If you use an accountant or other professional to prepare your tax return, and they file more than ten 1040/41 forms, they are required as of this year to e-file all returns. Given that most Silkin Management Group clients use professional tax preparation services, it is quite likely that their returns will be done by e-filing. This speeds up the process and, if you are due a refund, you should get it faster.
• The ever increasing complexity of the tax system: The U.S. has a highly complex tax system and it is getting worse. In fact in the last two years alone the U.S. system dropped 23 places out of 183 countries in terms of complexity – meaning it became more and more complex over the last two years. Many other governments are attempting to simplify their tax systems and several candidates running for office, including the Presidency, have proposed different simpler systems. But, as of this date, we are continuing to get more and more complex and it seems that the upcoming elections aren’t helping the matter. The idea of eliminating income tax and replacing it by a national sales tax has made interesting progress over the last few years and, some think, would greatly boost our economy. More on this in future Silkin Management Group blogs.
Dave McKevitt
Silkin Management Group Consultant
For more information about Silkin Management Group visit our website at www.silkinmanagementgroup.com or call us at 800-695-0257.
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