Tax Complexity and the IRS
·
Eighty-four percent of small employers
used a tax preparer for their most recent return, generally unchanged from 2006
(Q#1).
·
The fear of non-compliance (and the
associated fines, costs and time involved) in filing their taxes is the main
reason small employers hire a tax preparer or accountant (Q#2).
·
Of those small employers who did not use
a tax preparer for their most recent tax filing, 78 percent said they did not
use one because their return was simple enough to do themselves (Q#4).
·
Currently, 64 percent of small employers
use an electronic bookkeeping program for business purposes (Q#6).
·
About half of small employers process
their payroll in-house, 19 percent use an outside accountant or bookkeeper and
18 percent use a payroll service company (Q#28).
·
Just over half of small employers
personally handle the business’s financial paperwork and record-keeping, and 15
percent of owners delegate those responsibilities to an employee (Q#29).
·
About 42 percent of small employers
spend four hours or more a month on tax compliance activities, with 12 percent
spending over 10 hours or more a month (Q#8).
·
The main tax compliance activity for
half of small employers is paperwork preparation (Q#9).
·
About one-third of small employers have
sought information from the IRS website over the last three years (Q#11). About
one-quarter of them found the website very useful in accessing the information
of interest (Q#12).