Small businesses are the backbone of a thriving economy, and you expend your talents by building a competent workforce and marketing a needed product or service. There is one aspect that you may not want to tackle on your own though, which is calculating and filing your business tax return.
This complicated process can change annually as new laws take effect. Our business attorneys’ efforts do not just focus on preparing your return at the end of a fiscal year, they entail keeping up with changes all year that are going to impact you, so you are not left scrambling at the last minute to rectify a detail. A Phoenix business tax lawyer applies the Internal Revenue Service (IRS) rules and laws set by Congress to benefit you and keep you in compliance.
How Does a Business Tax Filing Lawyer Help Clients?
Because of the complexity of federal business income tax returns, one misstep can put you on the IRS radar. Federal business tax returns include Forms 941, 1094, 1095, 1120, 1065, and 1120-S. Arizona’s small business income tax returns include Forms 140-SBI, 140NR-SBI or 140PY-SBI, and remember, it matters which entity your business operates under: partnership, limited liability company, or corporation.
Although sole proprietors include their business income on their individual tax returns, the other entities have different filing requirements. You also have challenges if you own an international business, or your business has a foreign bank account or other holdings. The benefits you afford employees, such as IRAs, defined benefit pension plans, 401Ks, and healthcare plans can all affect your business taxes.
Your Phoenix business tax filing attorney will also review your accounting practices to ensure they comply with often-changing laws. The tax landscape is ever-changing, but we help you navigate it successfully.
Changes to Your Business Taxes
Federal laws have also made changes to your business taxes that have effects years into the future. For instance, if you issue Forms 1099-NEC and 1099-MISC to independent contractors, you do not have to report payments below $2,000, which was formerly $600. The thresholds will also start to be adjusted annually for inflation.
You can also expense eligible business property at 100 percent in the first year instead of the previous phased-down rate. This means new and used tangible property whose cost will be recovered within 20 years can be deducted immediately, saving you money on taxes so you can allocate it to investment and growth.
You also receive a boost in the allowable deductions for specific depreciable business assets. In years past, you could only deduct up to $1 million, but now you can deduct up to $2.5 million.
Additionally, if your business is likely to have substantial interest on accrued debt, you can take advantage of the restored and increased amount of deductible interest, formerly limited to 30 percent of adjusted taxable income, based on EBITDA practices: Earnings Before Interest, Taxes, Depreciation, and Amortization. Your Phoenix lawyer could explain all of these business tax changes as they happen so you can stay on top of things when filing your IRS returns.
Discuss Your Business Tax Filing Obligations with a Phoenix Attorney
Our mission is to help our business-owner clients all across Arizona with any tax issues that crop up. You do not want a problem to fester until you discover it during tax season, adding to your stress and possibly subtracting from your profits if you owe the IRS more than you anticipated.
A Phoenix business tax lawyer affiliated with our law firm is knowledgeable in this area, from helping you choose the proper structure for your business, to ensuring you understand all your tax obligations. Talk to our team and learn how we can help you, at any time of the year
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