Move to Extend Tax Credits for Small Businesses Employing Active Duty Military Workers

A move is underway in Washington to extend tax credits to small businesses employing active duty military members. The measure co-sponsored by Senators John Kerry and Mary Landrieu moves to extend through next year a tax credit for small firms to pay the salary differential to reservist workers called up for active duty. This small business tax credit provides incentive for small employers to eliminate any pay gap between civilian and military pay. Without the legislation, the tax credit will expire January 1, 2010.

The Small Business and Military Family Assistance Act of 2009 will provide tax incentives for small business employers who make up the salary difference for their reservist employees while they’re serving in Iraq or Afghanistan.  While many large businesses can afford to supplement the lower wages reservists earn while in active duty, small business owners struggle to offer the same service. 

 “Our legislation supports the small businesses that stand by our men and women in uniform when reservists are deployed. It keeps our service members employed and small businesses open for business.  In the face of a tough economy, we can do more to support the employers and reservists who make such profound contributions to our economy and national defense,” said Sen. Kerry.

The bill extends for one year a provision that provides small businesses with less than 50 workers with a 20 percent tax credit of the salary differential they pay for reservist employees called up for active duty, with a maximum tax credit of $4,000. Without this legislation, the tax credit would expire January 1, 2010.

“Our soldiers put their lives on the line each day to protect our country,” Senator Landrieu said. “As they keep us secure, we must keep them secure. Yet, as these soldiers serve millions of miles away, the families they leave at home often suffer as reservists take a pay cut. This tax credit has helped small businesses pay the salaries of reservist employees called to active duty and must not expire. Our brave soldiers should not be penalized for their dedicated service, nor should the small business owners who want to help their employees, but who are already suffering in these harsh economic times.”

New Website Named the Free Enterprise Nation Wants Business Owners & Consumers to Know Where their Taxes are Spent

There's a new effort to educate the public about possible excessive government spending. The Free Enterprise Nation is an organization formed to represent the interests of the private sector. And it was formed when we learned that there's a huge pay disparity between people in the public sector and people who pay the taxes to support them. The entrepreneur behind the new effort is Jim MacDougald, the founder and chairman of The Free Enterprise Nation website.

“Our tax dollars are going to provide public sector workers, public education and government workers with higher pay, better benefits, earlier retirement and higher retirement that anybody gets in the private sector. And we decided we'd put that information together and put it out on a website for everybody to see,“ explains MacDougald.

MacDougald hopes to educate taxpayers so they can communicate with elected officials on fiscal issues impacting business and commerce across the nation.

Small Business Owners & Self-Employed Taxpayers Have Specialized Resources at Their Fingertips

Taxes are the one thing all small businesses have in common! And the Internal Revenue Service has special services, help and information available for small businesses and self-employed taxpayer. This section for small businesses is filled with information that can help entrepreneurs year-round. And during tax filing season, there's a link at the top of the page called Filing Season Central – a one-stop assistance center to help small businesses and self-employed taxpayers file their tax returns. It even has a section on tax fraud scams, so you can recognize and avoid them.

IRS has several toll-free phone numbers, depending on the issue. For instance, if you received a notice from the IRS, you should call the number on the notice. If you have a question about a small business tax issue, there is a hotline for that: 1-800-829-4933. Taxpayers with questions about their individual taxes can call 1-800-TAX-1040. And if your issue can’t be handled online or by phone, there are Taxpayer Assistance Centers in many communities. You will find many video tax tips on SBTV.com and you can also see videos on the IRS site with a click here.