This week, our featured guest on The Small Business Trends Radio was Matthew Mogul, Associate Editor of Kiplinger Business Forecast.
Matthew discussed a variety of issues that small businesses may be faced with in the coming year. His interview was chalk full of insights and anyone who owns or runs a small business could benefit by listening to his interview, which can be found here
Here are some topics he discusses:
A tax gap — exists when it comes to sole proprietors and entrepreneurs and recent estimates show it is approximately 300 billion dollars. A GAO investigation claimed that one third of the tax gap comes from small firms not paying taxes they are supposed to be paying. This means that there may be more audits for smaller organizations. IRS red flags are dinners, mileage, charity, home office, auto use, travel, entertainment, etc. and small companies will be targeted to reduce this tax gap.
Sole Proprietors — will be looked at closely by the IRS as well as many more 1099 forms being sent. If $600 or more has been paid for services, there will be paperwork and documentation now to trace it. Companies are now paying a lot of attention to this and are more focused in their IRS responsibilities as a result.
As you can see from the sampling above, there may be some changes coming in the year 2008 and you'd be well-advised to be prepared for them. Matthew's interview is free to listen to or download onto your iPod. Visit the link above to learn more.