End-of-Year Tax Tips and Your Small Business

Michigan's State Treasurer Rachael Eubanks talks with Treasury's Scott Lonberger, director of the Tax Administration Services Bureau, on end-of-year tax preparation tips benefitting small businesses and entrepreneurs.

TAX RESOURCES for Your Small Business

• Small Business and Self-Employed Tax Center (IRS)
• Michigan Treasury Online (sign up for an MTO account to file, pay, and manage your business taxes)
• Michigan.gov/taxes (for a variety of business taxes information)
• Michigan.gov/treasuryoutreach (sign up for future outreach notifications)
• Etreas.michigan.gov/bt (for business taxpayers to submit account questions)
• Etreas.michigan.gov/tp (for tax professionals to submit account questions)

Transcript

End-of-Year Tax Tips and Your Small Business

Hosted by MI State Treasurer Rachael Eubanks, with guest Scott Lonberger

Rachael: Hello to our listeners! I’m Rachael Eubanks and this is Treasury Talk. Today our guest is Scott Lonberger, director of our Tax Administration Services Bureau, and he is here to provide small business owners with some helpful information as we approach the beginning of a new tax year. Our listeners would appreciate tax tips that save their businesses time and keep their companies in compliance and running smoothly. So right off the bat, what can you share with us, Scott, about what would be some helpful tips for small business?

 Scott:  Thank you Treasurer Eubanks. My first suggestion would be to make sure that businesses are set up to file and pay their business taxes electronically with the Department….and one of the best ways to do that is by utilizing Michigan Treasury Online.

 Rachael: For listeners who may not be familiar with Michigan Treasury Online, what can you tell them about it?

 Scott:  Michigan Treasury Online, (or MTO abbreviated) is the Department’s web-based platform where business owners can go for all their business tax needs.  Through MTO, taxpayers can:

1.      electronically file their business tax returns and make corresponding tax payments. 

2.      complete and maintain important tax registration information

3.      AND they can view account history  

 Rachael: What are some advantages of using MTO and where can business owners learn more?

 Scott:  MTO has many advantages:  First of all, it is free and secure, and it is available 24 hours a day. Also, by using MTO to file and pay electronically you avoid mailing issues, and you avoid calculation errors thereby increasing the accuracy of your returns.  Users can also view historical records such as correspondence and previously filed returns which can assist with the completion of current tax returns.  To learn more about MTO, business owners can visit:  mto.treasury.michigan.gov.  

 Rachael: Small business owners will be happy to know there are online resources that make running a company a little less complicated. What should they be concentrating on for end-of-year tax preparation?

 1.      Now is a good time to review your business tax registration information and make sure it is accurate and up to date.  Existing businesses may have registered with the Department years ago and things can change over time.

Maintaining this Department registration information is important because we rely on this data as our record for your business. Registration information is used to establish things like tax obligations, the legal address for notification purposes, power of attorney permissions, and active status of the business.  As your business changes, it is your responsibility to update your registration information as necessary, and again this can be easily updated and maintained in the MTO platform. 

 2.      Another reminder: when it comes time to file your taxes, be sure to BOTH file the return AND remit any corresponding taxes due.  This might sound basic but each year we get thousands of payments with no matching return. Both components are required for compliance and to avoid processing issues. 

 3.      Also, make sure you have a good system for maintaining and keeping records…things like invoices, receipts, exemption certificates, payments, and historical tax records are important for business operations and tax filing purposes but also, maintaining good records will assist you in the event the Department has a question about one of your returns. 

 4.      And finally, if the Department does have a question about a return and you do receive a letter from us – do not panic - most of our letter inquiries are routine and are simply seeking clarification.  Responding timely to these letters will help us resolve any questions and it will help you avoid processing delays or penalties. Importantly, if you receive a letter that you do not understand, your first course of action should be to reach out to Treasury using the contact information on the notice. 

 Rachael: Taxes can be complicated do you have suggestions on how to make business owners lives easier?

 Scott:  Without a doubt, taxes can be complicated. With multiple forms and the potential for changes each year, most small businesses could benefit from professional tax preparation help.  A tax professional is dedicated to helping you and your business. The professional will be up to date on the latest tax changes, will know how to complete required forms and will make sure you get all relevant deductions and credits.  I would encourage hiring a qualified tax professional so that the business owner can focus on daily operations and business growth.

 Rachael: Even if a small business uses a professional, they are bound to have questions, where can they go for help?

 Scott:  The Department of Treasury has lots of online content and information that will be of help.  

1.      For general information about business taxes, they can start by visiting Michigan.gov/taxes

2.      They should also visit Michigan Treasury Online at mto.treasury.michingan.gov for information on how to file, pay, and manage their business accounts electronically.

3.      The Department also engages in a variety of tax related outreach events each year…and business owners may sign up for outreach notifications at:  Michigan.gov/treasuryoutreach

 Additionally, if a business owner needs to ask the Department an account related tax question – those questions can be submitted through our business tax e-services available at etreas.michigan.gov/bt

 And finally, if you are a tax professional acting on behalf of your taxpayer client, you may submit account related tax questions through the tax professional e-services available at: etreas.michigan.gov/tp -- All of these website addresses will be posted in the podcast show notes.

Rachael: Thank you, Scott, for your tax tips and for the reminder that small business owners can find excellent information online – and they can also greatly benefit by consulting with a tax professional. I appreciate having your expertise on Treasury Talk!

 RESOURCES

• Small Business and Self-Employed Tax Center (IRS)
• Michigan Treasury Online (sign up for an MTO account to file, pay, and manage your business taxes)
• Michigan.gov/taxes (for a variety of business taxes information)
• Michigan.gov/treasuryoutreach (sign up for future outreach notifications)
• Etreas.michigan.gov/bt (for business taxpayers to submit account questions)
• Etreas.michigan.gov/tp (for tax professionals to submit account questions)