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Small Businesses Struggle as Tax Deadline Nears
Tax Day stress is upon us, as small businesses rush to deal with everything from the complex tax code and tax preparation costs to audit red flags.
Posted 4/ 11 11 at 4:30 PM | News, Taxes & Accounting
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With the April 18 tax filing deadline looming, the National Small Business Association released its 2011 Small Business Taxation Survey, which looks at how federal taxes impact small businesses. The NSBA surveyed 300 of its members online during the last two weeks of March and found that the complexity of the tax code has been an increasing burden for small businesses, with 57 percent spending a full workweek each year dealing with their filing. Additionally, one-third of small-business owners said they are spending more than $10,000 to have an outside firm prepare their return.Respondents ranked payroll taxes as the most burdensome taxes for their business, both financially and administratively. Only 44 percent of small businesses reported using an external payroll company, and for those that do, it didn't save them any time when it came to dealing with payroll taxes.
When it comes to claiming certain tax deductions as a small business, the survey uncovered some surprising results. The NSBA reported that only 47 percent of eligible small-business owners claim the home office deduction, primarily due to concerns it will "red-flag" their return for an audit.
Also, the majority of small businesses said they pay taxes on their business at the personal income level. Past data from the NSBA indicates that 83 percent of small businesses are set up as pass-through entities, with only 17 percent of small businesses paying their taxes through the corporate tax structure.
The NSBA, which advocates on behalf of the nation's entrepreneurs, said in its report that tax reform for small-business owners is one of the organization's top 10 priorities.
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Comments (Page 1 of 1)
Thanks for sharing the article... It presicely describes the stress of tax upon small businesses.. pretty informative .. good one...
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I wonder where we would be right now, concerning the economy, if the "Government Bank Bailout" would have been designated to the people through the banks to lend the amount broken down to every individual that filed taxes that year, to do with as they wish, no control on what you need to do with your amount. Pay off taxes, pay off doctor bills, pay off vehicle loans, pay off mortgages, buy new cars, buy new houses, remodel your old house, It doesn't matter what people done with the money, even crack dealers spend money. At least we would be alot closer to an economic breakthrough by now, but wait, we aren't even close now, Where is the money? I haven't got a clue, unless the wealthy has it so deep in their pockets that nobody can touch it.
Business owners and jobmakers are dragging the dead weight of the lazy around with them as they go. The lazy become a huge burden on businesses. The lazy don't provide jobs, businesses do. As long as entitlements are available, the lazy will keep voting them in. This means higher taxes on the productive, more national debt, and fewer and fewer jobs.