Why every Fort Wayne business should partner with a Fort Wayne CPA

The Federal tax code gets more complicated each and every year.  Congress continually changes the tax code and uses the tax code and its provisions to help ensure our elected officials win re-election.  The current Federal income tax code consists of over three and a half million words.  The tax code is not written in a fashion that is easy to understand.  In fact a 2010 Government Accountability Office report found that over two thirds of all corporate returns filed by sub-chapter S corporations contain errors.

The tax code now contains tens of thousands of deductions and tax credits that can lower the amount of income tax you pay and can increase the size of refunds you receive.  Hiring a professional to ensure that you pay the least amount of tax required is a prudent business decision.

The Internal Revenue Service has doubled the dollar amount of many of the myriad of fees and penalties that they can levy against taxpayers for non compliance.  Consider the following:

1.  
   1. The IRS charges a 10% penalty if a business pays it 941 taxes (Social Security, Medicare, and Federal income tax withholding) just one day late. 
   2. If you file an S corporation tax return (1120S) or Partnership tax return (1065)  late you will be charged $89 for every month or part of a month PER SHAREHOLDER.  So if you own a Partnership that has a total of three owners and the 1065 is one day late the IRS can charge you a penalty of $267.

There are literally hundred of fees and penalties that the IRS can and do levy against taxpayers! 

The Federal income tax code is so complicated that Congress requires the IRS to publish the average amount of time necessary to prepare all of the required tax forms.  According to the IRS the average 2010 annual S corporation tax return alone requires a business owner to spend an average of 153 hours and 23 minutes to do the required bookkeeping, research the laws, fill out the forms, etc.

It is not easy to run a business in Fort Wayne, Indiana; however, it is very satisfying.  I absolutely love operating my  Fort Wayne business and I truly enjoy helping my clients ensure that their businesses are both successful and profitable.

My firm specializes in small business accounting.  SBS CPA Group handles the tax and accounting needs of over two hundred businesses in the Fort Wayne area.  Our Fort Wayne CPA’s are experts and can work with you to keep your firm in compliance with the tax laws!

Mike Sylvester, CPA