Small business owners in Georgia may be pleased with an announcement by the IRS on Feb. 13 about regulatory tax changes the agency states will apply to 2014 and to subsequent years. The changes are designed to make it easier for small businesses to use repair regulations and comply with the tangible property regulations beginning this tax year.
The move simplifies the procedure for small business owners, and it will allow business owners to change an accounting method under the property regulations on a prospective basis. The procedure will be available to those small business owners with assets totaling less than $10 million. Business owners are also invited to comment on whether the $500 safe harbor threshold limit should be raised for those that choose deductions for property as opposed to capitalization and depreciation.
The changes announced by the IRS may help small business owners comply with the regulations for both 2014 and in the future as they prepare to complete their tax returns. Tax law is complicated, and the yearly changes in regulations and laws associated with it often make it difficult for people to make certain they are complying.
As mistakes can lead to audits and subsequent tax litigation, it is important that business owners stay abreast of the changes as they occur. Because this is difficult for many small business owners to do, many find it beneficial to seek out the help of a tax law attorney. A tax attorney may be more current with the changes in statutes, regulations, filing procedures and case law that applies to a client’s situation. In this way, a tax attorney may be better able to ensure that a client’s returns are completed and submitted correctly.
Source: IRS, “IRS Makes it Easier for Small Businesses to Apply Repair Regulations to 2014 and Future Years,” Feb. 13, 2015