Tax Season Closing in on Small Business Owners

National Association for the Self-Employed offers tools, tips for tax time

WASHINGTON, Jan. 15 /PRNewswire-USNewswire/ -- There are exactly 90 days to go until this year's tax filing deadline and many small business owners probably haven't even thought about their taxes yet. But the next three months will go by a lot faster than you think, says Keith Hall, national tax advisor for the National Association for the Self-Employed (NASE). Though April may seem like a long way off, Hall says the time to start preparing is now.

"Start with last year's tax return. It will tell you a lot about what to expect this time around, so if you had income or deductions on a previous year's return, there's a good chance you'll find them again," Hall said. From there, Hall suggests small business owners consult the IRS Web site. "One of the most helpful resources online is actually IRS.gov, as well as small business resources like the NASE. Also, consider using tax preparation software to help avoid all of those common math mistakes and make sure to install the latest software updates, like those for the Alternative Minimum Tax, to ensure you get the correct figures."

Hall encourages small business owners to gather documents including W-2s, 1099s, bank interest statements, and investment account statements which will help support the numbers given on a tax return. Other practical tips from Hall and the NASE include:

-- Save Tax Dollars with a Retirement Contribution. Contributions to most retirement accounts such as IRAs, SEPs, etc., can be made right up until April 15. With an SEP plan, small business owners can contribute as much as 20% of their Schedule C earnings to their own retirement and get a full tax deduction.

-- Avoid shortcuts. Take the time to go through the forms and instructions. Save time with online preparation or the use of tax preparation software, but don't take any shortcuts with the information. And always check your math to avoid unnecessary and careless mistakes.

-- Find the right professional. If you plan to use a professional tax preparer, get referrals from friends, co-workers, even clients. Speak to several different professionals. Find someone with the right experience in your type of business and ask about fees and timing.

-- Look for all Deductions. Among the most common deductions overlooked by micro-business owners are automobile usage, retirement options and the home office deduction.

The NASE recommends that micro-business owners start looking into available resources for tax preparation help now to avoid the last-minute crunch. In addition to the IRS Web site, the National Association for the Self-Employed (www.nase.org) also offers valuable tax assistance through its own Tax Talk program, offering free tax advice for the self-employed. Small business owners can visit http://taxtalk.nase.org/taxtalk.asp to submit their questions and get fast, knowledgeable answers to tax questions from CPAs at the NASE.

About the NASE

The National Association for the Self-Employed (NASE) is the nation's leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE is a 501(C) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's Web site at www.nase.org.