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Washington Watch - September 30, 2009


IRS To Conduct 6,000 Random Business Audits

 

The Internal Revenue Service (IRS) has announced that it will begin reviewing the tax records of 5,000-6,000  randomly chosen businesses beginning this November. The program will be completed over the course of three years on both for profit and non-profit employers.  

Here are some suggestions to make sure your company is ready:

  • Since these audits will be unfolding over a three-year period and audits typically cover a period of three tax (calendar) years, initiating an internal review of employment taxes compliance now is the first step to consider.
  • Identify an internal point person to manage the audit preparation process. Notices of audits can simply be addressed to the company at the address used for filing recent tax returns. If not directed to an informed contact person such notices may not be timely or completely responded to.
  • Identify and budget for internal and other resources to gather, organize and analyze such records and provide appropriate representation.
  • Engage experienced employment tax and audit experts before having an initial audit meeting with the IRS. Legal counsel should generally be able to provide assistance protected by the attorney-client privilege. Whether such expertise is engaged to either visibly represent the employer or simply to advise the employer in the background, it is important to engage these services early. Early involvement usually lends to a more efficient audit process.
  • Do not rush into an audit schedule. Do not commit to a date before the adequate resources are in place and there has been an opportunity to gather, review and analyze all initially requested documents. It is important for the employer to have an overview of the company's strengths and weaknesses.

For more information, click here.

For help organizing your taxes, visit the NASE's Tax Resource Center or ask our TaxTalk CPAs a tax question.


House Holds Hearing on Financial System Reform

The House Committee on Small Business recently heard testimony on how new regulatory changes to the financial system could impact small business owners.

“If regulatory reform inhibits the ability of small businesses to obtain credit or access needed capital, the regulation will have an adverse long-term consequence on the ability of the economy to grow,” said Ranking Member Sam Graves (R-Mo.) in his opening statement. 

Many of the panel members at the hearing expressed concern that current proposals may create additional administrative burdens for the self-employed and small businesses.

“Congress must not repeat the mistakes of the past when restructuring the regulation of the financial sector. Regulatory reform must not harm our small businesses nor should it increase the role of the government. Small businesses are the prime generator of new jobs in the economy and their concerns play a pivotal role in our reform measures,” said Graves.

To view the hearing on YouTube click here.


House Passes Short-Term SBA Reauthorization

The House recently passed a bill for a one-month extension of the authorization of Small Business Administration (SBA) programs.

The bill, sponsored by House Committee on Small Business Chairwoman Nydia Velázquez (N.Y.) would provide for an additional temporary extension of programs under the Small Business Act and the Small Business Investment Act of 1958 through October 31st.

The bill, H.R. 3614, was passed by a vote of 412-2 and was passed by unanimous consent in the Senate after approval in the House. The latest short-term reauthorization of SBA programs will expire September 30th (PL 111-43).


Small Biz Health Care Roundup

Here's a sampling of this week's top health care reform articles. If you find an article or blog that you think should be considered, drop us a line at media@nase.org

 



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