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July 28, 2014 – TaxTalk Blog
The Small Business Administration (SBA) recently offered a sobering statistic for anyone following their business dreams: 49 percent of businesses fail in the first five years.
One factor that can contribute to business failure is failing to understand taxes.
Although there are 44 different tax types, the two most common business taxes are sales tax and income tax withholding. Sales and use tax alone accounted for nearly $6 billion in 2013, the largest percent of revenue from any one tax type. These taxes affect all industries, but small businesses in Indiana alone comprise nearly 80 percent of sales and withholding tax revenues to the state. Small businesses truly are Indiana’s revenue generators.
Unfortunately, the Indiana Department of Revenue frequently finds small and new businesses have trouble complying with these and other Indiana tax regulations. Businesses involved in wholesale, retail, transportation, and manufacturing have the most compliance problems. When new and small businesses have difficulty with taxes it is often due to not understanding Indiana regulations regarding filing and paying Indiana business taxes.
To address this issue, the department created a business education outreach program in the fall of 2013. The program’s goal is to help businesses thrive with better taxpayer education earlier in the business formation process, and prevent issues such as tax penalties and warrants.
This fall, the department is partnering with the Indiana CPA Society to host three free presentations throughout the state. The presentation, Start Strong: Indiana Business Taxes for New and Small Businesses, discusses pertinent tax information for new businesses, and attendees will have the opportunity to have questions answered by an experienced business tax auditor and network with community business members.
Additionally, the department is hosting business tax presentations specifically for convenience store owners. Convenience stores manage multiple taxes, from food and beverage tax to gasoline use tax. Like other high volume retail stores, the tax and reporting complexities convenience stores face yields frequent compliance problems. The department hopes these presentations will help owners better understand their tax obligations.
If you’re interested in attending a Start Strong presentation, convenience store presentation, or hosting a business tax presentation in your community, visit www.in.gov/dor/5176.htm.
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