Tax Code Burden on Small Businesses
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According to the National Small Business Association's 2011 Small Business Taxation survey, the complex federal tax code is a costly burden to small businesses. Attempting to maintain compliance with the code takes time and money, extremely precious resources for small businesses.
The National Small Business Association (NSBA) reports that survey respondents named payroll taxes the most burdensome due to the fact that a majority of small businesses handle them internally. Adding to the burden is the news that IRS audits of small businesses continue to increase despite research that shows they misappropriated the blame for the tax-gap on small businesses.
"One in three small-business owners spends two full work weeks every year dealing with federal taxes, and the overwhelming majority (87 percent) are forced to pay an outside accountant or other tax return preparer," stated Larry Nannis, CPA, NSBA chair and shareholder at Levine, Katz, Nannis + Solomon, P.C. "The federal tax code is a massive resource drain for small businesses."
"The time for a serious debate on broad tax reform is now," stated NSBA President Todd McCracken. "The ever-growing patchwork of credits, deductions, tax hikes and sunset dates is a roller coaster ride without the slightest indication of what's around the next corner. This is unsustainable and unacceptable."
Read more from NSBA.