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Tis the Season to Get Ready for Small Business Tax Reporting

Posted on 1/25/2021 by EDTP Coordinator in LAEDA News
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Camden, NJ- On Thursday, January 14, 2021 LAEDA WBC hosted 2021 Tax Considerations for your Small Business with panelists Sheryl Paynter from U.S. Small Business Administration (SBA), Anthony Martinez and Carla Morrison from New Jersey Economic Development Authority (NJEDA) and Victor Garrido, enrolled agent, CPA and founder of GG CPA Services. The panelists gathered to discuss best practices for its views ready for small business as they approach tax season. Each representative wanted to ensure that business owners have accurate and complete records to show to the IRS without overpaying.

Jamila Powell, Program Manager at LAEDA’s Women’s Business Center started off the discussion for the night, “Since there are many things going on due to the pandemic, we are trying to help small businesses get the best resources and assistance for the upcoming tax season.”

Next Sheryl Paynter spoke about upcoming PPP (paycheck protection program) loan updates. “The SBA website helps you get information and the help you need straight from the source,” Paynter explains, “The lender has to feel comfortable with what you are giving them-remember lenders are like the gatekeepers and if you are in need of a valuable and helpful lender you can visit SBA.gov. If you need advice for your small business, please contact our SBA resource partners including the LAEDA WBC.

Then, Anthony Martinez spoke about best practices when applying for pandemic relief grants. “Read the instructions and read the instructions carefully, get all of your supporting documents ready, preregister if necessary. You have to dot your i’s and cross your t’s before doing and/ or submitting the application,” Martinez expresses.  He continued by reviewing major reasons businesses were declined grant funding. Various reasons included: (1) Duplicate applications, (2) Business not registered in the State at the date of application, (3) no tax filings, (4) business has over 25 full-time employees, (5) ineligible entity type, (6) answering “Yes” to Prohibited Business, (6) Did not demonstrate diminished capacity and a loss in revenue, (7) received phase 1 funding and (8) no demonstration of an unmet need.

Carla Morrison notes, “I cannot stress enough to make sure you properly register because not knowing will get you declined. You can visit the Division of Revenue's site to check if your business meets all the essentials of the registration process.” 

Martinez continued by emphasizing the need to also visit the NJEDA website periodically because the information there changes constantly. “Everything changes at a moment’s notice,” Jamila adds, “Know and ask questions ahead of time so that way you can do it right the first time.”

Last, Victor Garrido steps in to go over tax considerations for your small business by informing participants how to prepare for taxes, various options for tax season, what a tax professional can do for you, when to hire a professional, and where to find the right professional.

“As a business owner, keep in mind that accounting is something you should do monthly or quarterly. Successful business owner know their business numbers and are good at keeping accurate records all the time,” Garrido states. He continued by stressing the importance of finding the right tax provider based on the sophistication of your business. Garrido emphasizes, "When hiring a tax professional be really careful because hiring the wrong professional can cause unrecoverable and/or extremely expensive damages. There are some situations when you can do your taxes yourself and there are other situations when you will need to bring in a tax professional so it is important to understand your situation." Victor then the various free and paid options for tax preparation. 

Some free options for tax season include:

(1) Yourself, family or friend→ Appropriate only for simple tax situations
(2) Vita Program→ Appropriate for depending up on eligibility, no businesses

Some other options for tax season that are not free include:

(1) Turbo Tax or similar→ Appropriate for ideal for simple tax situations
(2) Tax preparer (PTIN Holders)→ Appropriate for simple to complex tax situations
(3) National Chains (H&R, Liberty Taxes, etc.…)→ Appropriate for simple to complex tax situations
(4) Enrolled Agents→ Appropriate for simple to complex tax situations
(5) Certified Public Accountants→ Appropriate for simple to complex tax situations
(6) Lawyers→ Appropriate for more complex tax situations

In addition, do not forget these valuable resources that are at the palm of your hands when preparing for this tax season:

(1) U.S. Small Business Administration
(2) IRS
(3) NJEDA Small Business Resources in NJ
(4) LAEDA WBC Business Counseling- Visit https://laedawbc.com/business-counseling/ or contact Jamila Powell, LAEDA WBC Program Manager at jpowell@laeda.com and Sophie Werner, LAEDA WBC Assistant Program Manager at swerner@laeda.com 

(5) SCORE (put in zip code)
(6) Veteran’s Business Outreach Centers (VBOC) (Find local Assistance by zip code)

Any additional questions and or concerns? Take advantage of the information and the reach out to LAEDA because we are here to HELP as Much or Little as you want.  As you are getting ready for a successful tax season, it is vital to have any questions or concerns answered before you file your business taxes.

LAEDA is available remotely through email, phone, and/ or video conferencing. Please call us at (856) 338-1177 or visit our website at www.laeda.com to learn more about our programs, services, and small business resources.