Home > Finance > Small Business Tax Tips From the IRS

Small Business Tax Tips From the IRS

By: SmallBizClub

 

A US Federal tax 1040 schedule D income tax form

Every month, the Internal Revenue Service publishes resources and information helpful to small businesses and individual filers. Here are some of the latest tips from the IRS:

Avoid misleading “Offer in Compromise” mills

The IRS reminds businesses to beware of promoters that claim their services are necessary to resolve unpaid federal taxes while charging big fees, often with no results.

Taxpayers can see if they’re eligible for the Offer in Compromise program with the:

Learn more from the new video playlist on offer in compromise.

Reminder: Nov. 22 is deadline to apply to ERC Voluntary Disclosure Program

The IRS’s second Employee Retention Credit Voluntary Disclosure Program runs through Nov. 22, 2024. This program lets businesses repay credits they received after filing ERC claims in error.

The program allows businesses to correct improper payments at a 15% discount and avoid potential compliance actions such as audits, full repayment, penalties and interest. This second round of the program is open for tax periods in 2021.

The frequently asked questions about the second ERC Voluntary Disclosure Program can help employers learn more.

  Tax relief: terrorist attacks, hurricane, storms, droughts

The current list of eligible localities is available on the Tax relief in disaster situations page on IRS.gov.

See below for recent disaster and deadline extensions.

Terrorist attacks

Due to recent terrorist attacks in Israel, the IRS is providing additional tax relief to affected businesses and individuals. The relief postpones deadlines to Sept. 30, 2025, for filing federal returns, making tax payments and performing other tax-related actions.

Hurricane Helene

The IRS offers tax relief for all businesses and individuals affected by Hurricane Helene, including all of Alabama, Georgia, North Carolina and South Carolina and parts of Florida, Tennessee and Virginia.

Taxpayers in these areas have until May 1, 2025, to file some federal tax returns and make tax payments.

Hurricane Helene – Dyed diesel fuel

In response to disruptions caused by Hurricane Helene, the IRS won’t charge a penalty when dyed diesel fuel with a sulfur content that does not exceed 15 parts-per-million is sold for use or used on the highway throughout all of Alabama, Georgia, North Carolina and South Carolina and parts of Florida, Tennessee and Virginia.

This relief is retroactive to Sept. 26, 2024, and will remain in effect through Oct. 15, 2024.

Illinois and Pennsylvania

The IRS offers tax relief for businesses and individuals in parts of Illinois affected by severe storms and flooding that began July 13. Tax relief for businesses and individuals in parts of Pennsylvania affected by Tropical Storm Debby is also available.

These taxpayers now have until Feb. 3, 2025, to file some federal tax returns and make tax payments.

Farmers and ranchers

The IRS issued guidance that offers tax relief for farmers and ranchers forced to sell or exchange livestock because of drought conditions.

Notice 2024-70 provides a list of the areas eligible for the relief. The list includes 41 states and other regions where drought was reported during the 12-month period ending Aug. 31, 2024.

Share refundable tax credit information with employees

Businesses can share this outreach package with employees and others to help the IRS reach people who can benefit from tax credits.

Many taxpayers are eligible for refundable tax credits but don’t claim them. For example, the IRS estimates four of every five eligible taxpayers claim the Earned Income Tax Credit, but millions of eligible taxpayers don’t claim it and miss out on this valuable credit.

Published: October 11, 2024
271 Views

Source: IRS

small biz club logo

SmallBizClub

SmallBizClub.com is dedicated to providing small businesses and entrepreneurs the information and resources they need to start, run, and grow their businesses. The publication was founded by successful entrepreneur and NFL Hall of Fame QB Fran Tarkenton. We bring you the most insightful thinking from industry leaders, veteran business owners, and fellow entrepreneurs. Follow us on Facebook, Twitter, and LinkedIn.

Trending Articles

Stay up to date with