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Last Minute Small Business Tax Tips From NASE National Tax Advisor, CPA
Entrepreneurs Expected To File Over 20 Million Returns For 2008 Washington, D.C., April 6, 2009 -- With Tax Day next week, is your return gathering dust in your home office? The
National Association for the Self-Employed (NASE) has one piece of advice – take
a deep breath.
"If you are running behind this year, there is no need to
panic," said Keith Hall , NASE's National Tax Advisor. "As long as you
have all of your paperwork gathered in one place before starting and take the
time to check your math, you'll likely have no problem getting your return filed
by April 15th."
Hall offers these last minute tax tips for
small-business owners who are starting to sweat:
- Check for hidden
deductions : There are a number of deductions that small-business owners and
the self-employed forget when filing taxes. If you work out of your home, your
office may qualify for a deduction. Do you drive to the post office or a client
site? Those miles may add up to a sizable deduction too.
- Retirement
Savings : Retirement savings, such as SEP contributions and IRA deposits, are
deductible for last year's tax return up until April 15, 2009. That means you
can count money deposited into these accounts, up until the day you file your
2008 tax return. In the case of SEP contributions, those can even be made up
until an extended due date, as late as October 15th.
- Filing
Date : If, despite all your rushing around, you still can't make the April
deadline, relax. All tax filers can get an automatic 6-month extension by filing
Form 4868 by April 15th, which you can download from the IRS Web site at http://www.irs.gov/ . However, an
extension of time to file is not an extension to pay. If you do not send the IRS
what you think you owe, you'll be stuck with late fees and interest.
-
Proofread the form : Most of the mistakes on tax returns are simple
addition and subtraction errors. Check your math. Then, check your math
again.
- Start thinking about next year : While micro-business
owners may be tempted to finish their return and not think about taxes again
until next year, now is a great time to reflect on how to reduce your 2009 tax
liability. Consider deductions for a home office or employing your children;
create a health reimbursement arrangement, which would enable the business to
reimburse bona fide employees for all out of pocket medical expenses; reconsider
the tax implications of incorporating your business; and research retirement
plans designed specifically for the self-employed, including an IRA, SIMPLE,
SEP, Single 401(k), and Keogh plan.
- Look for help : Sole
proprietors doing their own taxes can find help from a number of sources,
including the NASE's Tax Resource Center [tax.NASE.org ], where you can ask the NASE's expert CPAs a
question and hear back within a few business days. You can find Schedule C from
A to Z, a line-by-line guide for completing the tax form Schedule C, available
online at http://www.NASE.org .
The IRS also offers a Web site (http://www.irs.gov/ ) and toll-free help line, 1-800-829-1040,
for your tax questions.
About the NASE
The National Association for the Self-Employed (NASE) is the nation's leading resource for the self-employed and micro-businesses, bringing 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 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 Web site at www.nase.org .