Small businesses get temporary break from IRS
Saturday, July 25th, 2009Author : Biz2Credit Advisor
Small businesses hit with big fines for not disclosing their use of questionable tax shelters are getting a temporary break from the IRS.
Some small businesses have been the unintended victims of a 2004 law meant to penalize big businesses that abused shelters to hide profits, said the Associated Press.
The IRS will suspend fines through September on businesses that gained less than $200,000 a year from the shelters. Lawmakers asked for the temporary waiver while they rewrite the law, saying many small businesses have had to pay massive penalties for relatively small gains.
National Taxpayer Advocate Nina Olson cited a case in which a small business owner saved $45,000 over three years from a tax shelter and was fined $900,000 by the IRS, said the Associated Press.
This article was submitted by Katie Kapler, Director of Online Strategy for Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to katie.kapler@biz2credit.com.
Tags: big businesses, IRS, National Taxpayer Advocate, profits, Small businesses, tax shelters
