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Small Business Community Encouraged to Start Early as New Law, Government Shutdown Likely to Impact Filings

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CONTACT:  Kristofer Eisenla, LUNA+EISENLA media
kristofer@lunaeisenlamedia.com | 202-670-5747 (mobile)

Tax Reform Law Goes into Full Effect as Entrepreneurs Across the Country Brace for Delays in Refunds, Getting Questions Answered

WASHINGTON, D.C. – Today marks the official start of the Internal Revenue Service (IRS) income tax filing season as the government reopens and thousands of IRS employees report back to work after a month long government shutdown.  The uncertainty of how the new tax reform law will impact small businesses’ bottom-lines, coupled with delays in getting questions answered around new guidance guidelines and the potential for refund checks being held up has entrepreneurs bracing.

“With today’s official opening of IRS income tax filing season and the looming threat of a possible second government shutdown, we are encouraging small business owners to start preparing their income taxes today,” said Keith Hall, President and Chief Executive Officer of the National Association for the Self-Employed (NASE). “With the nation’s sweeping tax reform law in full effect for this first time this year, many small business owners understandably have questions about how changes to the tax code will impact their returns.  Long wait times for answers to critical questions small business owners have about filing for the first time under the new law are already being reported and should be expected for the remainder of the season.  The government is officially back open today, the first day of income tax filing season, but small business owners should brace themselves for a tax season filled with frustrations and delays.”

As tax season officially opens today, NASE is encouraging small business owners to start early as the new tax reform law and government shutdown is likely to impact this year’s tax filings.

1. Gather Your Documents Early – don’t wait until the last minute. Now is the time to start making sure you have all your important tax filing documents.

2. You’re Not Alone – stay connected. There are resources out there to help you from IRS.gov to NASE.org and tax professionals.

3. Educate Yourself About Changes to the Tax Code – there are changes and adjustments to the tax code year-to-year, particularly this year with the Tax Cuts and Jobs Act going into full effect. From doubling of the standard deduction, lowering of the individual rate – where the majority of self-employed businesses file – and elimination of unnecessary and time-consuming itemizing procedures, there are many changes this year to the tax code. Make sure you find out what they are in order to be prepared and in a position to take the most advantage of them.

4. Don’t Forget About Hidden or Overlooked Deductions – don’t leave anything on the table.  Make sure you are not missing any deductions that apply to you that can make the difference, such as mileage reimbursement, retirement contribution and the home office deduction.

“The government shutdown has created an additional level of uncertainty for small business owners at the worst possible time,” said Hall.  “The good news is that the nation’s new sweeping tax reform law will save millions of small businesses in every city and town across the country time and money with a new simplified tax filing system.  At the end of the day, this tax season will likely end up being good news for entrepreneurs, but they should brace themselves and start early for a bumpy ride getting there.”

Late last year, Hall penned an op-ed illustrating the impact the new tax system arguing that more American small businesses must educate themselves about how to make the new system work for them.

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The National Association for the Self-Employed (NASE) is the nation's leading advocate and resource for the self-employed and micro-businesses, offering a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy.

The NASE Next Biz Thinghelps identify and connect our nation’s smallest businesses. Need small business help? Check out NASE’sAsk the Experts for advice or the NASE Minute for small business support.

The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's website at NASE.org