S corporations have in recent years seen increasing popularity as the choice by many Atlanta, Georgia small business owners for the type of corporation they will establish for federal tax purposes. Although both the traditional C corporation and the S corp establish a separate entity and provide limitations on liability, the primary difference between the two is in how they are taxed.
Are you afraid to open that letter from the IRS?
Once tax season is over, most people breathe a sigh of relief and go on to other things. You looked over your federal return carefully before submitting it and thought all was well.
IRS has substantial power to collect data with a summons
When the Internal Revenue Service issues a summons to a taxpayer in Georgia or third-party performing services for taxpayers, the document represents a serious request for information. Failure to comply with a summons for information could prompt the federal government to file a lawsuit against the person or organization. Although a party might have a good reason to resist disclosing information, the chances of gaining a favorable ruling in court against the IRS are low.
IRS proposing regulations for qualified business income deduction
Revamped rules governing small business taxes may result in tax breaks for Georgia business owners. The Internal Revenue Service has proposed regulations that shed light on the qualified business income deduction, including which company owners might be able to claim the deduction. According to the rules, many small business owners can take a deduction of 20 percent of qualified business income.
An overview of a taxpayer's rights
If a person is audited by the IRS, he or she has rights that the agency must respect. For instance, Georgia residents have the right to have questions answered promptly and to expect employees to act professionally at all times. If a taxpayer does not receive good service, he or she may ask to speak with a supervisor about his or her experience.
Tax code change may result in more owing money
Taxpayers in Georgia and throughout the country could owe the IRS money in April 2019 according to the Government Accountability Office, which says that up to 30 million people have not had enough money withheld for taxes by their employers. This is because of changes to the tax code implemented in 2017. Conversely, simulations run by the GAO show that many other taxpayers have had too much withheld and will receive a refund.
