Opinions expressed by Entrepreneur contributors are their own.
Now that the Internet occupies a major role in today'sbusiness world, it's not surprising that the latest taxdevelopments are just a mouse click away. Many tax sites areespecially useful to entrepreneurs looking for tax compliance andplanning data.
While tax sites are plentiful, it's important to keep inmind that the information you find on them is only as reliable asthe sources it comes from. Make sure you know as much as possibleabout a site's owners, their credentials, and how longthey've been providing tax information before you do somethingdrastic like change your accounting system on their advice. Steerclear of Web sites sponsored by tax protest groups because theyoften advocate tax positions that are overly aggressive and, insome cases, frivolous, says Dennis Schmidt, a University ofNorthern Iowa accounting professor who does an outstanding job withhis Tax and Accounting Sites Directory. (See below.)
Also make sure the information you use is current. Some sitesmay have outdated tax data, which could eventually lead to troublewith the IRS. Look for dates on the information posted, and go tothe site regularly to determine how frequently it updates itsdata.
Keep in mind that the tax information you get from the Internetis "raw data," proclaims partner Ward Bukofsky with theBeverly Hills, California, accounting firm Moss Adams. It does notprovide "coordinated or comprehensive tax consulting, nor doesit apply all the data to a particular taxpayer's situation andweigh all the different considerations," says Bukofsky.
Schmidt concurs and warns that before you make any decision ortake any action based on tax information you discover on theInternet, you should always consult a qualified, professionaladvisor who understands your particular business well. Many Websites themselves point out that the information they provide is byno means a substitute for professional tax serv-ices andcounseling.
We recently reviewed a number of tax sites and found thefollowing to be among the better ones for entrepreneurs:
Tax andAccounting Sites Directory: This directory site serves asan index to numerous tax and accounting sites on the Web.Maintained by Schmidt, it's designed to be a starting point touse when searching for tax and accounting information and services.It offers a subject-specific directory, and topics run the gamutfrom federal tax law to policy and reform. A click on "TaxTopics" provides a list of tax sites, including a link called"Small Business Taxation," which offers very useful taxinformation geared toward small and midsized businesses.
TaxResources on the Web: Finance executive Alan G. Kalmanorganizes his directory of direct links alphabetically by taxsubject. The site is designed to serve as a portal for individualsand small-business taxpayers wishing to gain easy access to the taxassistance and resources available on the Inter-net. One of thelinks, "Business Entities," provides a number of topicsfor business taxpayers, in-cluding "Tax Aspects of SellingYour Business," as well as "Starting a Business andKeeping Records."
Internal RevenueService: The IRS' Web site is chock-full of taxinformation, forms and publications. Once you're at the site,click on "Tax Info for Business," which appears at thebottom of the page, then proceed to "Small BusinessCorner" for tax data affecting entrepreneurial companies. Youcan also check out the "Internal Revenue Bulletins"section, which provides you with the most recent IRS rulings. Theagency's Market Segment Specialization Program Audit TechniquesGuides are also available from this site.
Quicken.ComTaxes: This well--organized and graphically attractive siteincludes a good deal of tax infor-mation particularly useful forentre-preneurs. A sample of the information available includespayroll, federal, sales and state tax obligations. A sectionlabeled "Answers to Your Questions" provides help ondoing your books. Links to tax and accounting Web sites are alsooffered.
Small BusinessTaxes & Management: One of the best sites for thoseentrepreneurs looking for in-depth tax information, it includesupdates of federal rules, summaries of revenue rulings andprocedures, and small-business links. Small Business Taxes &Management has been providing tax and management guidance to smalland midsized businesses since 1980. The site is updated daily,Monday through Friday.
GaryKlott's Tax Planet: Tax Planet is not just for businessowners, but it does include many articles entrepreneurs will finduseful, such as information on Roth IRA conversions, travelexpenses, home offices and charitable contributions. Launched inFebruary, the site is edited by Gary Klott, a syndicated taxcolumnist and former New York Times writer. Articlesummaries are well displayed and come with links to the fulltext.
The TaxProphet: Robert L. Som-mers, a San Francisco tax lawyerwith more than 23 years of experience, is "The TaxProphet." In his solo practice, Sommers representsentrepreneurs and small companies and is very familiar with the taxissues important to them. Site surfers can find useful taxinformation under the headings "What's New,""Hot Tax Topics," "Frequently Asked Questions,""Tax Publications" and "Cyber Surfing." Topicsof interest to entrepreneurs include finding the right taxprofessional and what to do if you get audited.
As you can see, there are a good many online tax sites ready toprovide useful information and advice. Just be sure to use themcarefully, and always obtain the advice of your accountant on anychange that will affect your particular situation.
Joan Szabo is a writer in Great Falls, Virginia, who hasreported on tax issues for more than 13 years.
Contact Source
- Moss Adams, (310) 278-5850, wardb@mossadams.com
