Small Business Action Plan - 2016 ELECTION

Hillary Clinton and her campaign to assist small
businesses by reducing their business taxes with

"Checkbook Accounting."

Clinton Brings a New Action Plan to the table for small businesses to save on taxes.

With the upcoming presidential election quickly approaching, there have been many unanswered questions from the Clinton campaign. Recently Hillary Clinton and her campaign has given us the specifics on her small business proposals if she was elected president for the next presidential election term.

Taxes as easy as 1,2,3....

When it comes to filing taxes for small business owners, one proposal this election is to offer a standard deductible, very similar to a personal standard deductible when filing. At this time, an amount for the standard deduction has not been mentioned, but being able to file standard will separate a small business company from a much larger business owner financially.

Currently, for any business that has a revenue of over $10 million who makes, buys, or sells their product must be accountable for the accrual method when filing. The accrual method accounting requires any business owner to include not only what is sold, but must also include the unsold inventory that is left by the end of the year. This is much more complicated especially in the following years when the product finally is sold. For businesses who accrue over $25 million in sales, they file by a much simpler process known as cash accounting process. By being able to claim the cash accounting process, the income and sales are then recognized when cash is being exchanged. Another plan going into this election year is that the campaign proposes a less aggressive financial tax reduction for businesses who make less than $1 million in revenue. The plan recognizes this proposal as " Checkbook Accounting".

Checkbook accounting is a much simpler way for small businesses to file their taxes. For smaller businesses under the Clinton proposal, instead of claiming the accrual method or the cash accounting process, a small business owner will be able to claim inventory bought earlier in the year, in which it has not been sold yet. Unsold inventory will be considered as a write off for a future year when it is sold. Per the campaign the  "Checkbook Accounting" process is so easy, that a small business owner would not need to keep records, receipts, or inventory list. It is still unclear how this will change any required business tax purpose forms, but according to John Rainey, regional director of the Massachusetts Small Business Development Center at Clark University, small businesses need to keep financial statements. By not keeping any sort of financial statements and fully relying on your tax deductions, a small business owner would not have the slightest clue as to how their business or growing. Rainey suggest that as a small business owner, they should be able to use their financial statements by ends year as a small business owners inventory should be slim to none.

Bigger Deductions for Small Businesses

Currently small businesses have a $5,000 deduction for start up expenses. Another proposal that was made was that there will be an increase in the deduction to $20,000. The business start up expense would start to top out at or around $50,000-$55,000. A plan to eliminate taxes on small business investments and its capital gains would also be included with the revised tax reform for small businesses. There would also be a  cap on Section 179 of the tax code to a $1 million limit. Due to the recession 8 years ago, per Forbes.com, the maximum deduction was set at $100,000 which is not a huge deduction. 

Military Moves Made Easy

One of the main factors that she sees is our military men and woman and their families. When relocating comes about, it is quite hard for spouses and dependent individuals to re-gain a new state license after transferring. A new plan is being made to  focus on easing up the licensing requirements from state to state so we have a continuous work flow for the American families.

Clinton's Affordable Care Act

While she notices that very few are enrolled in the Affordable Care Act due to the number of employees and average wages, she would make a few adjustments to benefit all small businesses. The plan is to  increase the eligibility to 50 employees and would allow more small businesses to offer retirement plans.

Atlanta Georgia Income Tax Preparation,
With GBC Services income tax preparation services, you can rest assured that your taxes will be done right and on time every time.
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Free Income Tax Calculator

Be prepared this tax season with
good planning and a good accountant

Estimate your income tax return free of charge. These free online income tax calculators help you to estimate your federal tax liability ahead of time.

Take measures to ensure there is no unexpected surprise when it comes time to file your tax return and pay your taxes. 

Estimating your tax liability ahead of time can dramatically reduce your anxiety and stress during the tax season. It allows you to quit worrying about what your tax bill will be and focus on meeting your financial obligation. You can then prepare your tax return without that stress hanging over your head.

READ MORE >> INCOME.TAX.CALCULATOR.COM: Income Tax Calculator 2014 - 2015

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For All Your Accounting Needs Call GBC 678-366-9232

Should I Use the IRS Withholding Calculator This Tax Season?

Avoid having too much or too little
income tax withheld from your pay.

If you are an employee, the Withholding Calculator can help you determine whether you need to give your employer a new  Form W-4, Employee's Withholding Allowance Certificate to avoid having too much or too little Federal income tax withheld from your pay. You can use your results from the calculator to help fill out the form.

Who Can Benefit From The Withholding Calculator?

• Employees who would like to change their withholding to reduce their tax refund or their balance due;
• Employees whose situations are only approximated by the worksheets on the paper W-4 (e.g., anyone with concurrent jobs, or couples in which both are employed; those entitled to file as Head of Household; and those with several children eligible for the Child Tax Credit);
• Employees with non-wage income in excess of their adjustments and deductions, who would prefer to have tax on that income withheld from their paychecks rather than make periodic separate payments through the estimated tax procedures.

READ MORE >> IRS.GOV: IRS Withholding Calculator

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•     About GBC Services
•     GBC Audit Services Website
•     Visit the Internal Revenue Service's Website

Do you need to meet with your tax representation prior to being audited by the IRS?

Having excellent experienced tax 
representation is extremely
 important and invaluable
during an audit by the IRS.

People who acquire tax representation for their tax audits, often wonder whether or not they need to meet with their actual tax representative.

The good news is that if your time is extremely valuable and you hire tax representation to represent you to the IRS, you usually do not need to meet up with them at all. 

Through the Power of Attorney (form 2848), your tax representative can handle all the dealings with the IRS on their own. This includes even being able to sign final agreements with them after the tax audit of your business is complete.

Download Form 2848

One thing to note is that tax representation can be extremely useful for people who are incredibly busy, however there is a caveat that needs to be talked about. The IRS can still force you to appear by using what is called an “administrative summons”. This administrative summons is most often used if your IRS representative is not cooperating with the IRS and sharing all the details they are looking for. Often this happens too if they are expecting or have suspicions of some sort of fraudulent behavior with your filing.

In this case, having very good tax representation is extremely important and invaluable. They can help you save yourself from possible pending criminal charges which the IRS take extremely serious. If you do know you filed wrongly, or inaccurately, you should hire help right away to help you correct the mistake.

Often people in this situation succumb to:

• Fabricating receipts
• Fabricating records to support invalid deductions
• Lie to the examiner about income or other items

High quality tax representation whether you are in Atlanta, Georgia or anywhere else is money well spent and is often worth its weight in gold (solid gold).

Typically, it is very difficult for the IRS to prove underlying tax evasion. Doing any of the above three things though is what on average leads to the taxpayers ultimate downfall. Honesty truly is the best policy. Regardless, having a good tax representative who is well versed in criminal cases or potentially criminal cases could end up saving you from the wrath of the IRS.

GBC Income Tax Services is a proud member of the Atlanta Better Business Bureau, is an accredited BBB member with an A Rating.  
Visit our BBB profile here.

Call GBC Income Tax Services today at 678-366-9232 for all your tax and IRS needs!

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• Payroll Taxes for Your Small Business
• Contact GBC Income Tax Services Today! 
• GBC Tax Offer Atlanta Experienced IRS Representation
• Why Hire a CPA Listed with the BBB

Atlanta Payroll Tax Problems with the IRS? No Worries. We Got You Covered.

Haste makes waste

If you are in Atlanta and are having payroll tax problems with the IRS, fear not anymore. There is indeed a solution. There is a few things you should know about payroll taxes though, crucial knowledge that could help you avoid legitimate problems with the IRS as long as these rules of thumbs are followed and guidelines applied.

First things you need to know before getting Atlanta IRS representation is what to hold back from every employee's paycheck:

• Federal (and if applicable state) income taxes
• FICA contributions (for such programs as Social Security and Medicare) 
• READ MORE ABOUT FICA  

Knowing that going in, it will be a whole lot easier to help you out of your Atlanta IRS based problems should you ever need professional audit help.

Other important notes for an employer to know to help them with their Atlanta payroll tax problems:

• How much income tax to withhold depends on the numbers of exemptions claimed by the employee.
• FICA contributions from a percentage of gross earnings earned by the actual employee in which you must either match to a certain percentage, or fully.
• Use a federal tax deposit form with your payment (makes things way easier)

Along with these, there are also a couple things you must make sure you always send to the IRS. If you do not send these to the IRS, then you may indeed find yourself needing Atlanta IRS representation.  The Atlanta IRS requires this information by federal law, so it is best to make sure you send it over:

• Form 941 Employer's Quarterly Federal Tax Return. Form is filed every 3 months whilst your business maintains employees. This report shows the employees' federal income tax and FICA withheld for the previous quarter.
  Download Form 941
• Form 940 Employer's Annual Federal Unemployment Tax Return or FUTA. Filed once a year, and is used to calculate federal unemployment tax. It is important to note that the FUTA tax is paid by the actual business and is not withed from the employee's check.
  Download Form 940

If you find yourself failing in this area of Atlanta IRS representation for your business, do not fret. The Atlanta IRS has reported that the vast majority of businesses are often late, or mess up, their taxes. While the Atlanta IRS considers payroll taxes the most serious of all the tax debts, often they will be willing to work with you as long as you pick the correct Atlanta IRS representation.  

Be careful with payroll taxes, as Atlanta IRS collectors can be extremely tenacious if you owe any payroll taxes whatsoever. 

If you do find yourself in trouble, give GBC Tax a call today to help with your Atlanta IRS representation, the sooner the call the sooner your payroll tax problems can be fixed.

Call GBC Income Tax Services today at 678-366-9232 for all your tax and IRS needs!

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• Payroll Taxes and Your Business
• Helpful Payroll Related Articles
• Visit the Internal Revenue Service's Website
• Contact GBC Income Tax Services Today!