IRS Continues Random Business Audits
Since last November, the Internal Revenue Service (IRS) has been reviewing the tax records of nearly 6,000 randomly chosen businesses in order to help close the tax gap, or the amount the IRS is owed versus the amount it collects each year.
Generally, business owners undergoing an audit will be asked to provide documentation from three years prior. The focus will be in four areas, including worker classification, fringe benefits, reimbursed expenses and compensation of the business owner.
"The first thing I tell business owners is not to panic," says NASE National Tax Advisor, Keith Hall. "As long as you have adequate records and are organized, then the audit process is relatively simple. You may even get an additional refund."
The NASE believes that most self-employed business owners meet their tax obligations fully and in a timely manner. For help organizing your taxes, visit the NASE's Tax Resource Center or ask our TaxTalk CPAs a question.
Update: Small Business And Jobs Legislation
In his weekly address, President Barack Obama focused on new initiatives intended to help struggling small businesses. These proposals include using $30 billion in TARP funds to create a new Small Business Lending Fund to provide capital to community banks to increase lending to small businesses, offering a new tax credit for over one million small businesses that hire new workers or raise wages, and providing targeted support for the most innovative small businesses with the potential to export new goods and products.
Watch video of the president's address, which focused on small business the week.
Obama, GOP Leaders Spar On Health Bill Contents
Congress is set to pick up the health care bill talks later this month, and both GOP leaders and the White House are staking their intentions for the legislation. President Barack Obama, hoping to quell fears on the bills' direction, met with Republican and Democrat leaders early this week.
Shortly thereafter, House Minority Leader John A. Boehner (R-Ohio) sent out an e-mail alert headlined, “White House Health Care Summit: Honest, Bipartisan Conversation or Set-Up for Another Democratic Backroom Deal?”
President Obama pushed back by saying, "Bipartisanship can’t be that I agree to all of the things that they believe in or want, and they agree to none of the things I believe in or want, and that’s the price of bipartisanship, right? But that’s sometimes the way it gets presented."
The president has called for a bipartisan meeting on the health care bills when Congress reconvenes following the President's Day recess. The health care summit will take place Feb. 25th.
Read the alert sent out by Boehner here. For more details on the White House responses on health care, click here.
Poll: Are You An Independent Contractor Or Do You Hire Them?
The Obama Administration recently released their FY2011 Budget. Included in the budget is a proposal to change regulations relating to the use of independent contractors.
Please click here to take the survey and let us know what you think.
Washington Watch Online
Visit NASE Advocacy to view archived editions of Washington Watch. While you’re there, read the latest updates from the Washington, D.C. office, write your Congressperson, and find out how you can join the fight for micro-business.