In celebration of National Small Business Week, April 28-May 4, 2024, the Internal Revenue Service is featuring useful tax-related tools and resources to help small business owners, employers and self-employed individuals succeed. Small business best practices The IRS offers a dedicated Tax Center tailored specifically for small and self-employed businesses, providing a wealth of resources and guidance. Understanding small business best practices and how to get started are crucial to industry success. Keep the computer-generated notice that was issued by the IRS when you applied for your employer ID number (EIN). This notice is issued as a confirmation of your application for, and receipt of an EIN. If you lost or misplaced your EIN, follow these steps. Choose a recordkeeping system that clearly shows income and expenses. Accurate and complete recordkeeping makes it easier to prepare your tax return. Avoid a tax time surprise by making estimated tax payments with electronic options like Direct Pay and the Electronic Federal Tax Payment System (EFTPS). Transition to electronic filing. Starting in 2024, if you file more than 10 information returns annually, electronic filing is mandatory. The IRS recently introduced the Information Returns Intake System (IRIS), a free and secure online portal designed to facilitate the electronic filing of Form 1099 series returns. What to know when starting a business As you embark on your journey of entrepreneurship, it's crucial to lay a solid foundation for your small business. It is critical for every new small business owner to: Correctly classify your business. Decide on the appropriate business entity (sole proprietorship, partnership, corporation, S corporation, or LLC) to determine tax filing requirements and legal considerations. Get your employer identification number (EIN). An EIN, also known as a federal tax identification number, is used to identify a business entity. You may apply for an EIN in various ways, and now you may apply for free online. Keep adequate records. Good records will help you monitor the progress of your business, prepare your financial statements, identify sources of income, keep track of deductible expenses, keep track of your basis in property, prepare your tax returns, and support items reported on your tax returns. Hire the right tax professional. Choosing the right tax professional is essential for small business owners to ensure accurate and timely tax preparation. For more guidance on making this important choice, see Need someone to prepare your tax return? Consult the IRS’s Guide to Starting a Small Business PDF. The guide provides quick references about Federal tax considerations when opening a business. Also available in Spanish PDF, Simplified Chinese PDF, and Traditional Chinese PDF. Beware of scams Fraudsters use regular mail, telephone and email to scam individuals, businesses, payroll and tax professionals. Businesses should watch out for tax-related scams and implement safeguards. Know your risks and the warning signs to better protect your businesses and employees. Remain vigilant against common scams targeting you as a business owner, ensuring protection against fraudulent activities. Visit Tax scams/Consumer alerts for up-to-date information. Remember, the IRS doesn't initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. Know the telltale signs of a scam and how to know if it’s really the IRS. Take proactive steps today to safeguard your business and employees, by implementing robust security measures such as using anti-malware/anti-virus software with automatic updates and enforcing strong passwords with multi-factor authentication. Ensure that you only enter personal data on secure websites (https) to prevent unauthorized access. For information on how to protect your business from tax scams, see Publication 5961, Protect your business from tax scams PDF. Resources for tax pros who support small businesses Stay informed with the latest IRS updates and access resources tailored for tax professionals. IRS Nationwide Tax Forum registration is open. This summer, tax professionals have the opportunity to attend continuing education sessions in five U.S. cities. The forum offers valuable continuing education credits and networking opportunities for enrolled agents, CPAs, attorneys, and other tax professionals. Attendees can earn up to 18 continuing education credits, enhancing their professional development and expertise. Stay updated on tax regulations and resources provided by the IRS to help you navigate tax season effectively. Subscribe to weekly e-News for tax professionals to get the latest IRS updates for the tax professional community. This is a weekly summary generally issued on Fridays, that highlights key information for tax professionals. Expect the unexpected The IRS Disaster assistance and emergency relief for individuals and businesses page provides the latest tax relief guidance for disaster situations. Whether you live in an area frequently impacted by disasters or not, being prepared for an event that could cause damage to your business is critical. Take steps now to prepare your business. Take advantage of paperless recordkeeping for financial and tax records. Store critical documents in waterproof container and duplicate important paperwork. Document valuables and business equipment. After a disaster hits, photographs and videos of a home or business's contents can help support claims for insurance or tax benefits. The IRS disaster-loss workbooks can help individuals and businesses PDF compile lists of belongings or business equipment. Employers using payroll service providers should check if their provider has a fiduciary bond in place to protect the employer in the event of a default by provider. Employers are encouraged to create an Electronic Federal Tax Payment System account at EFTPS.gov to monitor their payroll tax deposits and receive email alerts. Visit our YouTube channel to view our Preparing for disasters video. Resources for small businesses Emergency preparedness plans for businesses should Include financial records SECURE 2.0 Act changes affect how businesses complete Forms W-2 Tax pros: 2024 IRS Nationwide Tax Forums registration now open National Small Business Week: IRS warns entrepreneurs to take precautions on data security; protect their businesses, employees, customers Taxpayers and tax pros: Beware of these common tax scams National Small Business Week: IRS.gov offers one-stop shop for small business tax resources Small businesses: Find tax resources and tools on IRS.gov What people need to know when starting a business National Small Business Week 2024 begins; IRS offers tax resources, information to nation's entrepreneurs Online learning opportunity for small business owners Employers: Watch out for Employee Retention Credit schemes What taxpayers should do when they receive Form 1099-K Credits and deductions under the Inflation Reduction Act of 2022 Gig economy tax center Business taxes IRS tax tips IRS Small Business Self-Employed Tax Center Transcript ASL Helpful links Small Business and Self-Employed Tax Center Webinars for small businesses Small business tax workshops, meetings, and seminars Small business forms and publications Tax reform for small business Forms and associated taxes for independent contractors SBA announces National Small Business Week 2024 Languages
