- When a taxpayer requests an EIN
for a new business, the IRS should at that time also send (electronically
and/or by the U.S. Post Office) information about tax obligations of a
business in a form understandable by a layperson.
- Provide funding to the IRS and
SBA to run live, online workshops for new business owners on specific
topics relevant to helping the taxpayer understand their tax obligations and
to ask questions.
While there
are numerous publications at the IRS website that can help a new business owner
understand their tax obligations, they can be overwhelming and sometimes not
specific enough such as to explain estimated tax payments and information
reporting obligations.
An example of
such workshops can be found at the California Department of Tax and Fee
Administration (CDTFA) website that cover a multitude of topics such as recordkeeping,
navigating the CDTFA website, and ones specific to particular industries. Other
states might have similar workshops that are examples of ways to help business
owners understand their tax obligations.
- Find ways to promote and fund
tax literacy activities.
Any federal
funding of financial literacy activities should be sure to include an
introduction of federal tax obligations of a new business. STEM activities
funded by the government, and similar ventures that reach high school and
college students, should also be encouraged or required to offer tax education
because many of these students will become self-employed entrepreneurs.
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