Tax Tips to Get Businesses Ready for 2014

Tax Tips to Get Businesses Ready for 2014

It is officially 2014, which means tax season is right around the corner and businesses need to begin preparation. The following are some tax tips companies can use to get ready for this tax season:

– Review subcontractor data: Tax law requires businesses to submit a Form-1099 to any subcontractor that was paid more than $600 for his or her services, according to Entrepeneur.com. These forms need to be mailed to the recipient by Jan. 31, so businesses need to get started on these as soon as possible. The information necessary to send a 1099 includes the subcontractor’s address, Social Security number or federal ID number. This can be obtained by providing them with a Form W9 upon hiring.

– Shift income into 2014: Businesses that want to reduce taxable income for 2013 may want to consider shifting income into 2014. This would require companies to bill customers late, so the income doesn’t come in during the period that would make it eligible for the 2013 tax filing, according to Forbes. This translates potential revenue into 2014, which allows businesses to reduce taxable income for this filing.

– Schedule a professional tax planning session: The last thing a business wants to do is make a mistake when filing its taxes. For this reason, top decision makers should consider seeking professional help. Tax pros could potentially help a business reduce its taxable income, and, in turn, its tax bill in 2014. According to Entrepreneur.com, this move is recommended to any company that saw its profits increase significantly this past year. However, it could be helpful for all businesses to avoid costly mistakes.