There are a few potential reasons why business owners may not take full advantage of tax incentives available to them:
- Lack of awareness - They may not know about all the tax credits, deductions, and other incentives they qualify for. Staying on top of changing tax laws and new incentives can be challenging. We keep our clients constantly updated!
- Hassle factor - Some tax incentives require a good amount of record-keeping, paperwork, or other effort to claim. Business owners may decide the extra work isn't worth the potential tax savings. We do 98% of the work!
- Cash flow - Many tax incentives only provide savings when taxes are filed. But to claim them, money often has to be spent upfront. Some businesses may not have sufficient cash flow to make those initial outlays. We have no upfront fees!
- Qualification issues - Tax incentives frequently come with specific requirements around things like location, industry, equipment purchases, payroll, etc. Businesses may not fully qualify for the tax breaks they are seeking. Our software derermines that in 60 mseconds!
- Fear of audit - Claiming large deductions or credits can raise a red flag with the IRS and potentially increase audit risk. Some business owners may prefer to play it safe. In 20+ years we have not been challenged by the IRS!
- Temporary nature - Tax incentives are often temporary or phase out over time. Business owners may be reluctant to make long-term investments based on short-term tax breaks. Is a $5/mo subscription with no contract a long term investment?!?
- Lack of tax savvy - Some business owners simply aren't aware of all the tax-saving moves they could make or don't fully understand how to maximize their tax incentives. Hiring a knowledgeable tax advisor can help identify opportunities. That's why we created our software, there is nothing like it!!
The bottom line is tax incentives provide great opportunities for many businesses, but not unless they check their benefits now!!
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