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Staying Up To Date With Changing Tax Laws

Staying Up To Date With Changing Tax Laws

 

It is important to stay up to date on changing tax laws in order to ensure compliance and maximize financial benefits to your business.  For the year 2023, corporate income tax changes occurred in many states, offsetting the increase of federal tax burdens. “While U.S. businesses are facing a higher federal tax burden thanks to legislation approved by Congress along party line votes last year, governors and state lawmakers have decided to move in the opposite direction, providing tax relief to employers and doing so with bipartisan support”  

A person who is beginning the journey of starting a business should take special note, even in terms of how they set up their business.  In corporate taxation, for example, how income is distributed amongst shareholders can mean a ‘double tax’.  This is often an unintended consequence of simple tax legislation. 

 

Here are a few tips to keep up with the changing tax laws: 
Follow news sources that cover tax changes 

There are many news outlets that cover changes in tax laws, such as the Wall Street Journal, Forbes, and Bloomberg.  Setting up alerts and subscribing can help keep you informed about any updates.  For example, the Wall Street Journal’s “Washington Wire” blog provides regular updates on tax changes, with articles such as: “Child Tax Credit Expansion: What You Need to Know” and opinion articles such as “Unhappy New Tax Year for U.S. Business”   

Join professional organizations

Many professional organizations such as the American Institute of Certified Public Accountants (AICPA) and the National Association of Tax Professionals (NATP), offer resources and updates on changes in tax laws.  By joining one of these organizations, you can stay informed and connect with other professionals in the field.  The AICPA’s “Tax Insider” newsletter, for example, provides updates on tax changes and how they may impact businesses: “Stay up-to-date on the latest tax developments with the Tax Insider.  Each issue covers the most important tax news and developments affecting businesses, individuals, and tax professionals.”  

Work with a tax professional 

It can be helpful to work with a tax professional, such as a CPA or tax attorney, who can provide guidance on how changes in tax laws may impact your business.  They can also help you navigate any necessary paperwork or compliance requirements.  Forbes has a list of tax professionals to consider working with, including CPAs, tax attorneys, and enrolled agents: “When it comes to taxes, it’s important to work with a professional who understands the ins and outs of the tax code.  Here are some tax professionals you may want to consider working with to help you navigate your taxes.”  

Keep records of your tax filing and payments 

It’s important to keep good records of your tax filing and payments in case you are audited or need to provide evidence of compliance. This includes keeping copies of your tax returns, as well as records of any deductions or credits you have claimed. The IRS has a list of suggested record-keeping guidelines for businesses on their website: “Good record keeping is essential for every business. Proper records will help you monitor the progress of your business, prepare your financial statements, identify sources of your income, keep track of your deductible expenses, keep track of your basis in property, prepare your tax returns, and support items reported on your tax returns.”  

 Compliance with all relevant regulations is business critical.  By staying compliant, you can help your business to save money and avoid any potential penalties or legal issues. 

If you are looking for someone to help alleviate the complexities of maintaining your tax compliance related to having employees – talk to ESSG. We maintain and file all related taxes for our client’s employees. You no longer need to file quarterly and annual reports with your state and federal tax authorities. Compliance becomes an ESSG issue instead of a you issue. Contact us directly and learn more about saving time and eliminating risk.  

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