There are 3 key areas that contributed this year to so many companies owing:
- Surprise Profitability
The last several years have been decent if you’re lucky but dismal for most. This caused most companies to pull back on quarterly tax prepayments, or often eliminate them altogether.
- 2017 Was Better Than Expected
There is no question that 2017 started an upswing that is continuing to get stronger with each passing quarter (even for those companies have yet to feel the impact of that upswing). Once income began to flow again, many businesses were forced to make capital investments that were years overdue. This means that although 2017 was in fact more profitable, it wasn’t “felt” by many Owners. Not all investments may be written off in the current year. Even if the bank account hasn’t recovered, the IRS considers many to be profitable, even if the bank accounts don’t reflect the same.
3. Tax Breaks Disappeared
October 15th reduced some deductions by 40%, unless you put certain things in place.
What can you do about it?
Step #1 for most business Owners I’ve talked to is:
- Pound their fist on the desk angrily while complaining about the government
- When that ceases to provide relief move on to the below Step 2
Step #2 We’ve developed a simple online tool for business owners to check in 30 seconds if you qualify for any Federal Programs.
