| One of the largest burdens on very small | | | | only be eligible for the annual filing if their |
| employers is dealing with taxes. Fortunately, the | | | | estimated annual employment tax is $1,000 or |
| IRS has taken a major step to reduce this | | | | lower. Put another way, this equates to paying |
| burden. | | | | roughly $4,000 in wages in a calendar year. That |
| Quarterly Federal Tax Returns - Not! | | | | is a significant catch. |
| There are millions of small businesses that labor | | | | Ostensibly, this new annual tax return procedure |
| under the burden of filing federal tax returns each | | | | is designed to help mom and pop businesses or |
| quarter of the calendar year. These quarterly | | | | businesses that are barely running. Depending on |
| returns have been a major gripe of business | | | | the specifics of the regulations, however, a |
| owners who often feel they see their CPAs more | | | | significant loophole may let a lot more people |
| than their families. The IRS is finally listening. Well, | | | | through the door. The IRS, for instance, |
| sort of. | | | | categorizes a single member LLC as a sole |
| Beginning January 1, 2006, the quarterly federal | | | | proprietorship. As a result, the LLC doesn't |
| tax return will go the way of the dodo bird for | | | | technically pay employment taxes. Instead, the |
| some small businesses. Instead of being required | | | | member can simply draw money from the |
| to file every three months, these small business | | | | business and then report it on his or her personal |
| will be allowed to just file an annual federal tax | | | | taxes. |
| return with the IRS. | | | | To find out if you qualify for the annual return |
| When it comes to taxes and the IRS, there is | | | | option, just sit and wait. The IRS is going to send |
| always a catch. So, what is it in this situation? The | | | | out notices to qualifying small businesses during |
| annual tax return procedure will only be available | | | | the first two weeks of February 2006. If you |
| to very small businesses, often just sole | | | | don't receive one, you can contact your CPA to |
| proprietorships. | | | | see if there are any options for your business. |
| Under the new regulations, small businesses will | | | | |