15760 Ventura Blvd, Suite 610 Encino, CA 91436
15760 Ventura Blvd, Suite 610 Encino, CA 91436
Personal, Affordable Payroll Services, Bookkeeping, and Tax Processing for Small Business throughout Los Angeles County.

2015’s Top 4 Trends in Taxes

1. Watch Out for Identity Theft — Small business owners should continue to be wary of identity thieves this year. Identity theft topped the IRS’s list of the 12 most common tax scams for 2014.

Businesses should perhaps seek the advice of security professionals when searching for the best way to safeguard personal and business information. These experts can create customized protection for your company. Sometimes it is preferable to use an employer identification number if you’re an independent contractor; using your social security number on your W-9 can be a security weakness.

2. Questions about Tax Reform — Both Houses have new tax committees thanks to a change made in Congress. What will happen with tax reform? Possible proposals could include simplifying the Tax Code, reducing individuals’ tax rates, reducing the top corporate tax rate to 25 percent, or repealing the alternative minimum tax.

3. Limited IRS Availability — Just over half of all taxpayers — 53 percent — will be able to reach someone at the IRS by phone this year, it has been predicted. Around 72 percent were able to get questions answered last year during tax season.

The IRS is dealing with a reduced budget, which will result in more difficulty for taxpayers to get any questions answered. Small businesses can alleviate their issues and questions regarding specific new legislation, like the Affordable Care Act, by utilizing an accounting firm like ATPP (Accounting Taxes Payroll Partners) in Los Angeles.

4. Perpetual IRS Issues — Some things continue to pose a problem for the IRS such as whether or not a worker is defined as an independent contractor or an employee.

Another issue concerns income reporting by Schedule C filers. It’s imperative to make sure these individuals don’t overdo their deductions, fail to report certain income or forget to report self-employment tax.

In some cases, the IRS will not have the resources to conduct a full audit. However, they can do a correspondence audit, which are letters asking for explanations regarding a person’s taxes. In this case especially, individuals should contact a payroll partner.

ATPP is one of the top accounting firms in Los Angeles. A full-service firm, we specialize in small businesses’ needs. To learn more, request a quote online or call us today at (818) 436-2775.