The Tax Reform Checklist: Is Your Business Ready

Tax Reform Checklist

The Tax Reform Checklist: Is Your Business Ready

It’s an open secret that most American business-owners stress over their taxes. The possibility of getting penalized by the IRS alone is enough to send shivers down the spine of any business person. On top of that, this year, businesses also have to factor in tax cuts and account for the Jobs Act that came into effect last year – all of which further complicate proceedings.

To ensure that our readers are never caught unprepared by tax changes, we’ve compiled a comprehensive checklist for you to adhere to. Simply complete every task mentioned on this list and you’re almost guaranteed an un-taxing tax filling process.

Step #1 – Relax:

It’s perfectly understandable if you feel overwhelmed by the tax filing process. However, a panicked or a distracted state of mind is extremely detrimental to your performance, so we advise you to relax before you approach the problem.

Besides, the new tax law has reduced the corporate tax rate to a flat 21% this year so you have absolutely nothing to worry about. Before filing your taxes, take a deep breath, gather your thoughts, and don’t forget to bring your rationality to the table!

Step #2 – Do Internal Research:

In order to understand how the new tax reforms will affect your business you must first develop a deeper understanding of your employees. The alterations to individual tax policies mean that your business could be profoundly impacted by the tax reforms.

individual tax

Therefore, it’s of the utmost importance that you’re aware about factors like individual tax brackets, personal exemptions, standard deduction, and child tax credits, etc. All these variables will help you file a comprehensive tax report and will save you both time and money!

Step #3 – Learn Your State’s Policies:

Instead of blindly trusting your friend who lives in California when it comes to taxes, it’s much better to do your own research as tax policies vary from state to state. It always pays to consult with local state tax authorities to develop a better understanding of what’s applicable to your business and what doesn’t matter.

We want you to understand how your state’s policies align with the national tax code and how to identify and address any differences that there may be between the two. Also, learn about when the new statewide legislations kick in and if your business is promised any tax exemptions, etc.

Step #4 – Analyze the New Tax Law:

The new tax law has received a mixed reaction. Some praise it for being light on American families while others argue that it needs to be stricter on big corporations. However, one aspect that almost everyone agrees on is the fact that it’s incredibly complicated.

In order to ensure that you get the most out of your tax returns, you need to comprehensively study the new tax law. In particular, identify if there are any incentives and exemptions offered by the new tax law that your business is eligible for. For example, the law allows deductions of 20% for qualified pass-through business income.

Step #5 – Bring In The Experts:

If all of this seems like too much work, you can always bring in the experts and simplify things for your firm. This allows you the creative freedom to focus on the business element of your organization while a dedicated team of individuals files your taxes for you.

team of individuals files your taxes

If you’re looking for premier tax preparation service providers in Las Cruces or El Paso, you’ve come to the right place! The Tax Busters EP team consists of highly-qualified accountants and tax preparation specialists that will make filing your taxes much easier for your business.

Pick up the phone and contact us today to learn more about how you stand to benefit from our services!