Bookmark and Share [ [link removed] ]

a { color:#0073AF !important;} a:hover { color:#004673 !important;} <!-- body { font-family: arial; } p { font-size: 12px; } li { font-size: 12px; } h2 { font-size: 24px; font-style: italic;} -->
IRS.gov Banner
IRS Newswire April 26, 2024

News Essentials

What's Hot [ [link removed] ]

News Releases [ [link removed] ]

IRS - The Basics [ [link removed] ]

IRS Guidance [ [link removed] ]

Media Contacts [ [link removed] ]

Facts & Figures [ [link removed] ]

Around The Nation [ [link removed] ]

e-News Subscriptions [ [link removed] ]

________________________________________________________________________

The Newsroom Topics

Multimedia Center [ [link removed] ]

Noticias en Espa?ol [ [link removed] ]

Radio PSAs [ [link removed] ]

Tax Scams [ [link removed] ]

The Tax Gap [ [link removed] ]

Fact Sheets [ [link removed] ]

IRS Tax Tips [ [link removed] ]

Armed Forces [ [link removed] ]

Latest News Home [ [link removed] ]

________________________________________________________________________

IRS Resources

Contact My Local Office [ [link removed] ]

Filing Options [ [link removed] ]

Forms & Instructions [ [link removed] ]

Frequently Asked Questions [ [link removed] ]

News [ [link removed] ]

Taxpayer Advocate [ [link removed] ]

Where to File [ [link removed] ]

IRS Social Media [ [link removed] ]

________________________________________________________________________


Issue Number:? ? IR-2024-123

Inside This Issue
________________________________________________________________________

?

*National Small Business Week 2024 begins; IRS offers tax resources, information to nation's entrepreneurs*

?

WASHINGTON ? The Internal Revenue Service today offered helpful information to entrepreneurs in anticipation of the upcoming kick-off of National Small Business Week, celebrating and recognizing the crucial contributions America's small businesses make to the nation's economy.

?

Each year, the U.S. Small Business Administration [ [link removed] ] spearheads National Small Business Week, helping entrepreneurs with resources, benefits and other important business startup information that small business owners can use to launch their enterprises. This year's celebration ? "Building on America?s Small Business Boom" ? runs from April 28 through May 4.

?

The Internal Revenue Service is a partner in the National Small Business Week celebration, and this year the IRS will be showcasing numerous resources to help small business entrepreneurs learn and understand their tax responsibilities and benefits. Throughout the week, IRS will be publishing helpful information in its popular Tax Tips [ [link removed] ] e-News publications, as well as on IRS social media platforms including Facebook [ [link removed] ], X [ [link removed] ] (formerly Twitter), LinkedIn [ [link removed] ] and Instagram [ [link removed] ].

?

Next week, the IRS will share several important tax topics to help small business entrepreneurs prosper and grow:?


* *Monday, April 29.* "Best practices for small businesses" ? The IRS strongly encourages small business entrepreneurs to take advantage of the numerous resources available on gov [ [link removed] ]. Knowing how to start a business and understanding best practices are essential for the success of small businesses.
* *Tuesday, April 30.* "What to know when starting a business" ? Gain insights into key factors to consider when launching a new business venture. Access the Starting a business [ [link removed] ] webpage to ensure a strong foundation for an entrepreneurial journey.
* *Wednesday, May 1.* "Beware of scams" ? The IRS "Dirty Dozen" and more. Most cyberattacks are aimed at small businesses with fewer than 100 employees. Small business owners must implement data protection safeguards and always be on the lookout for tax-related scams.
* *Thursday, May 2.* "Tips for tax pros who support small businesses "? Stay informed with the latest IRS updates and access resources tailored for tax professionals.
* *Friday, May 3.* "Expect the unexpected" ? The IRS can help small businesses after a disaster. A critical focus of the IRS is to relieve the federal tax burden of taxpayers who have been impacted by federally declared disasters. The IRS works with various agencies to provide assistance and coordinate disaster relief.?

Seeking to start a small business involves several important considerations related to tax issues:

?

*How to get an Employer Identification Number*

?

Most business owners need an Employer Identification Number (EIN) [ [link removed] ], a permanent form of identification that, in many cases, must be used for filing a tax return and can be used for various business needs such as opening bank accounts. Businesses can get an EIN online immediately at IRS.gov, and it's free.

?

*Choosing a business structure*

?

Small business owners, as taxpayers, must decide on what the most appropriate business structure should be for their enterprise when they start their new business [ [link removed] ]. The business structure they choose dictates the type of income tax return form that the business owner will file each year. Some common business structures include:?


* *Sole proprietorship* [ [link removed] ]*.* Individuals who own unincorporated businesses exclusively, by and for themselves are sole proprietors.
* *Partnerships* [ [link removed] ]*.* A partnership is the relationship between two or more people to conduct trade or business, with each person contributing money, property, labor or skill and sharing in the profits and losses of the business.
* *Corporations* [ [link removed] ]*.* In a corporation, prospective shareholders exchange money, property or both in order to acquire the corporation's capital stock.
* *S corporations* [ [link removed] ]*.* An S corporation is a corporation that elects to pass corporate income, losses, deductions and credits to its shareholders for federal tax purposes.
* *Limited liability company (LLC)* [ [link removed] ]*.* An LLC may be treated as a corporation, a partnership or as part of the owner?s tax return (e.g., sole proprietorship), depending on elections made by the LLC and its members. LLCs may also be subject to state regulations, which vary from state to state.?

*Understanding business taxes*

?

Federal law requires all individuals, including small business owners, to pay taxes on all income earned. This typically involves making quarterly estimated tax payments for small business owners and self-employed individuals [ [link removed] ]. How business taxes are paid depends on the business structure that an entrepreneur has chosen. The following are the four generally recognized business tax types:?


* *Income tax.* With the exception of partnerships, all businesses must file an annual federal income tax return; partnerships must file an information return.
* *Self-employment tax.* A Social Security and Medicare tax primarily for individuals who work for themselves. Tax payments contribute to the individual?s Social Security system coverage.
* *Employment tax.* Small businesses with employees have certain employment tax responsibilities that must be paid, along with specific forms that must be filed.
* *Excise tax.* Imposed on various goods, services and activities, excise taxes may be imposed on a manufacturer, retailer or consumer, depending on the specific tax.?

*Choosing a ?tax year? *

?

A "tax year" is an accounting period for reporting income and expenses. Small businesses can choose which tax year works best for their operational needs:?


* *Calendar year.* Twelve consecutive months beginning January 1 and ending December 31.
* *Fiscal year.* Twelve consecutive months ending on the last day of any month except December. A 52- to 53-week tax year is a fiscal tax year that varies from 52 to 53 weeks but does not have to end on the last day of a month.?

*Be a responsible recordkeeper*

?

Maintaining well-organized business records [ [link removed] ] not only helps in tax return preparation, but also assists small business owners in preparing financial statements, identifying income sources, tracking deductible expenses and monitoring their business progress. Small business owners should retain their business records for at least three years.

?

*More small business information**?*


* Small Business and Self-Employed Tax Center [ [link removed] ]__
* 10 Steps to Start Your Business [ [link removed] ]
* Hobby or Business? IRS Offers Tips to Decide [ [link removed] ]
* Industries, Professions and Business Tax Centers [ [link removed] ]?

Finally, for more information on a broader range of topics and answers to small business tax questions, visit the IRS website at IRS.gov [ [link removed] ].?

?

Back to Top [ #Fifteenth ]

________________________________________________________________________

FaceBook Logo [ [link removed] ]??YouTube Logo [ [link removed] ] ?Instagram Logo [ [link removed] ]? Twitter Logo [ [link removed] ] ?LinkedIn Logo [ [link removed] ]

________________________________________________________________________

Thank you for subscribing to the IRS Newswire, an IRS e-mail service.

If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe [ [link removed] ].

This message was distributed automatically from the mailing list IRS Newswire. *Please Do Not Reply To This Message.*


________________________________________________________________________

Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page [ [link removed] ]. You will need your email address to log in. If you have questions or problems with the subscription service, visit subscriberhelp.govdelivery.com [ [link removed] ].

This service is provided to you at no charge by the Internal Revenue Service (IRS) [ [link removed] ].


body .abe-column-block {min-height: 5px;} ________________________________________________________________________

This email was sent to [email protected] by: Internal Revenue Service (IRS) ? Internal Revenue Service ? 1111 Constitution Ave. N.W. ? Washington, D.C. 20535 GovDelivery logo [ [link removed] ]
body .abe-column-block { min-height: 5px; } table.gd_combo_table img {margin-left:10px; margin-right:10px;} table.gd_combo_table div.govd_image_display img, table.gd_combo_table td.gd_combo_image_cell img {margin-left:0px; margin-right:0px;}