Small Town News
Only 43% Of Small Businesses Know About Tax Break
Only 43 Percent Of Small Businesses Know About Tax
Break Available Under Health Care Law Lawmakers
Urge Tax Preparers TNotify Their Small-Business Clients Of Up T$40b In Savings
Up t4 Million Small Businesses Qualify For Tax Credit Enacted Under New Health Care Law
IRS Sent Mass Mailings TEligible Companies Last Year TNotify Them Of Tax Break, But Recent Survey Shows More Than Half Unaware
In Letter, Senators Ask H& R Block, Jackson Hewitt, Other Tax Preparers TDTheir Part TInform Clients Of Tax Break
Noting a January survey that showed only 43% of eligible small businesses are familiar with the tax credits enacted as part of health care reform, Senate Democratic leaders called on the nation's leading tax preparers thelp businesses take advantage of the tax break. Senate Majority Leader Harry Reid, Senate Finance Committee Chairman Max Baucus, & Senate leaders Charles E. Schumer, Patty Murray, Debbie Stabenow, Dick Durbin, & Mark Begich sent a letter urging tax preparers tnotify the 4 million small businesses eligible for the tax break.
The credit could provide up t$40 billion in savings.
"The credit is designed tencourage small employers toffer health insurance coverage for the first time or maintain coverage they already have. Over 10 years, the tax credit will be worth $40 billion tour nation's small employers," the senators wrote. "We feel it is important that we dall we can tensure that none overlooks this credit."
Eighty-three percent of small businesses qualify for the credit. Businesses with fewer than 25 employees & average wages of less than $50,000 can receive up t35% on the health insurance they provide tworkers.
The credit will increase t50% in 2014. Over 10 years, the tax credit will save small businesses $40 billion.
"When this credit was enacted in 2010, the IRS notified eligible businesses that they would be entitled tthis credit. The IRS alsrecently announced how eligible tax-exempt organizations which dnot generally file returns will claim the credit during the 2011 filing season. Despite this outreach, a recent survey by the Small Business Majority found that more than half of those surveyed were still not aware of the tax credit," they wrote.
According ta study by the Small Business Majority, nearly 1.2 million American businesses are eligible for the maximum tax credit, which the IRS estimates could save some small businesses tens of thousands of dollars. But the study alsshowed only 43% of the eligible businesses are familiar with the new tax breaks, even though the IRS has sent out 4 million postcards theighten awareness.
Copyright 2011 Southeast Alaska's Island News, Thorne Bay, Alaska. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from SmallTownPapers, Inc.
More from Southeast Alaskas Island News