Small Businesses Spend Billions Of Hours Total On Tax Compliance
Written by Jenna Weiner
Small businesses are spending billions of hours on federal tax compliance.
Taxes are due today, and researchers from IBM Global Business Services, IRS NHQ Office Research and Quantria Strategies have released a report with some surprising small business news on how much time taxes actually take the sector.
According to the survey, small businesses, which the group defined as being a C corporation, S corporation and partnership with no more than $10 million in assets, spend between 1.7 billion to 1.8 billion total hours in order to comply with federal tax regulations.
If these figures are broken down, that would equate to each of the 7,000 businesses surveyed devoting 236 to 255 hours to compliance, with businesses citing record-keeping as the top burden.
Additionally, businesses spent the most money on securing assistance from tax professionals and accountants.
One tax rule that could have added to the time and money small businesses spend on compliance was fortunately repealed earlier this year by Congress. Passed as part of the healthcare reform bill, provision 1099 would have required small businesses to file a form any instance they spent more than $600 in a given year.
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