Small businesses secured Small Business Administration backing under the agency’s flagship 7(a) program for 71,131 loans through the first nine months of the fiscal year – a 21 percent increase over the same period a year ago and a 49 percent increase over the same period two years ago. Loans executed so far this fiscal year amount to $11.1 billion – 19.5 percent more than in the same period last year. For information on applying for an SBA loan, visit this site.
The Internal Revenue Service has issued new rules, outlined in Revenue Procedure 2005-39, allowing corporate officers or authorized agents to sign employment tax forms by facsimile, including alternative signature methods such as computer software programs or mechanical devices. The rules are intended to reduce burden on business taxpayers by simplifying employment tax filing and lowering the number of returns rejected because of signature issues.
Small Business Administration last month launched a live Web chat series on entrepreneurship for small business owners. The chats will be held monthly on a variety of small business topics. For information, visit www.sba.gov.
The 2006 Toyota Highlander Hybrid and the 2006 Lexus RX 400h have been certified by the Internal Revenue Service as eligible for the clean-burning fuel deduction. Taxpayers purchasing one of these hybrid vehicles new during calendar year 2005 may claim a tax deduction of up to $2,000 on Form 1040.
You hate taxes. If you are like many other business executives, you complain bitterly when the time comes to make your hefty payment to Uncle Sam – and after the check is mailed, you promptly move on to your next operational or financial crisis. But do you really devote significant time and effort to ensuring that your tax bill is as small as absolutely possible?
You probably think it’s your CPA’s job to minimize your taxes. Truth is, the typical accounting firm has more than enough to do handling a client’s routine compliance issues; interim and yearend audits or reviews; multi-state corporate returns; subsidiary and consolidated returns; related entity returns for trusts or family LLCs; and owner/manager personal returns. Often there’s little time to sit back and actually plan for saving taxes.
The best time for comprehensive tax planning is in the summer or early fall months. Accounting and tax firms are busy in November and December helping clients implement pre-yearend tax saving strategies. And they are swamped January through April with yearend financial reports and the preparation of all those tax returns. Allowing a month for recovery and vacations, June through October becomes the only realistic time for clear-headed tax planning.
