If you provide services to your customers or clients, you already know what it’s like to work hard for your money. Face it, chances are if you work you get paid, but if you don’t work, you’re probably not getting paid.
And now state governments, Congress and the IRS have decided that you should pay more tax too.
Here are three tax changes you need to watch out for:
Tax Change #1: Ever-expanding definition of nexus.
Nexus means connection. If you have a connection to a state, then you probably owe sales tax and even income tax to them.
If you haven’t recently checked out your nexus status, do so right now! Go to http://www.USTaxAid.com/ebiz and download the manual. Answer the first 10 questions and then send them on to your accountant to see where you might have some tax issues.
Tax Change #2: IRS audits on the rise.
The IRS is targeting small business involved in cash transactions and those that operate as a Sole Proprietorship (Schedule C).
Tax Change #3: Possible New S Corporation tax.
This is a tough one. We’ll know more over the next few weeks, but if it passes, a lot of us will have to re-think our S Corporation.
Stay tuned! We’re bound to hear more on this in the next few weeks.