As a small business owner, you have a lot of responsibilities. You have to make sure your employees are happy, your customers are satisfied, and your business is profitable. Plus, you must keep up with the latest trends in their industry. Because you’re carrying such a heavy load, it’s normal for things to sometimes fall to the wayside – like staying up-to-date on the latest tax laws and regulations.
The Tax Cuts and Jobs Act (TCJA) of 2017 was the most extensive overhaul of the tax code in three decades, and it’s had a significant impact on businesses, large and small. That’s why it’s critical to stay up-to-date on the latest information. After all, your business’ tax situation is constantly changing, and what worked last year may not work this year.
- You could owe back taxes. This is especially likely if you’ve had a significant change in income or made major purchases like equipment or real estate.
- You could be subject to penalties and interest charges. The IRS charges interest on unpaid taxes and assesses penalties for late filings and payments. The sooner you bring your taxes current, the less you’ll have to pay in interest and penalties.
- You could be paying too much in taxes. A change in the tax laws could mean your current business structure may no longer be the most advantageous from a tax standpoint.