How to Make the IRS Your Ally

Tax Planning
August 2021
Paying taxes is one of the many responsibilities of being a business owner. A growing business has many decisions to make that can affect its year-end taxes. While the IRS can tax you for a good chunk of your earnings, there are many ways to prepare in advance to lessen those taxes. Here are some tips you can employ to put your business ahead of the curve.
  1. Taking advantage of changes in business tax law
    Both this year and last year have witnessed many tax cuts due to the impact of Covid 19. It led to the emergence of legislation like the CARES act, which contains relief options for businesses, including delaying payment of payroll taxes. It is important to know what changes have been made and how you can best utilize them.

  2. Boost retirement funds
    If you are on the payroll of your own company, boosting retirement funds will help you save money for the future rather than expending them through deductions. It is even possible to offset earnings from the previous year.

  3. Create more employee perks
    A valuable employee perk may appear extravagant to some employers, but it can help you save on employer payroll taxes. Some benefits that your employees will not pay tax for include the following:
    • Occasional employee meals
    • Company cell phone
    • Occasional tickets to sporting or music events
    • Up to $50,000 in life insurance coverage
  4. Charitable contributions
    Charitable contributions are a win-win situation for you and the charity organization. It both helps a charity in need and provides a tax reduction strategy that helps maximize your profit and build your brand rep.
​​​​​​​While these are good beginning points, there are still many more ways to prepare in advance for your taxes.

Schedule a free consultation with us today to discuss your tax situation and how we can best prepare you.