How Business Tax Changes Will Affect You

If you own a small business, you will want to be sure your taxes are being paid properly. That way, you reduce your risk of encountering problems with the IRS, and you can also have peace of mind knowing your business is paying taxes and addressing financial issues in the best possible way.

Whether you handle taxes yourself or you hire someone to do it for you, understanding changes to the tax law can help you be an informed participant in your business tax preparation. Here’s what you need to know about the most recent changes for tax year 2018.

Major Tax Revisions Require Formal Training and Experience

At Larry Turner, CPA, we have served the Gilbert area for 25 years and have seen a lot of major tax revisions during that time. Our extensive formal training and experience with changes in the tax law make us a great choice for your business tax preparation needs. One of the most important changes to the tax law is the effective dates for filing. You don’t want to miss a deadline, or you could be fined by the IRS.

If you have a sole proprietorship or a single person LLC, you need to have your taxes filed by April 15, 2019. For an S Corporation or a partnership, though, the deadline is a full month earlier, on March 15, 2019. Corporations can file their taxes on or before April 17, 2019, to avoid IRS penalties. 

Tax Rates and Mileage Rates Are Changing

Anyone who is working on business tax preparation should know their tax rates, and there have been some changes to those rates for 2018. The business tax rate starts at 10 percent and rises to 15 percent. From that point, it continues to rise incrementally until it reaches 39.6 percent. That is an adjustment that will last until 2025 when the tax rates will be revisited and potentially changed.

The mileage rates have changed for 2018, as well. They are now 54.5 cents per mile for business and 14 cents per mile if you’re driving for a charitable organization. With all the different ways you can receive deductions for your business and the rates and filing deadlines that have to be considered, it’s important for you to ensure you understand your business’ taxes, rights, and responsibilities.

By hiring a tax professional to take care of your business, you can feel comfortable at tax time. That lets you focus on the day-to-day operations and growth of your company, so you can get more done.