Rep. Nydia Velázquez, D-N.Y., chairwoman of the House Small Business Committee, says the IRS should do more to help small businesses get on top of their taxes. She suggests educational sessions, flexibility in making payments, and quicker processing of refunds. Yesterday, she sent a letter to the IRS commissioner noting that, according to the Government Accountability Office, entrepreneurs can be stuck with filing 200 IRS forms each year. Simplifying this process could help keep more small businesses open, she says.
Velázquez and her committee recommend that the IRS take the following four actions:
- Process COBRA refunds more quickly, so small businesses aren't stuck making COBRA payments for months before receiving their reimbursements promised by the Recovery and Reinvestment Act.
- Process small business tax refunds quickly.
- Offer flexible options, such as installment agreements and postponed collections, to small businesses that are struggling to pay their taxes because of the recession.
- Help teach small businesses more about tax preparation by holding open-door sessions aimed exclusively at small businesses. (The IRS already provides such a service, known as "Super Saturdays," to taxpayers, but so far no Super Saturday has focused on entrepreneurs.)