Tax Payments May Increase Small Businesses Need For a Loan in 2013

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With taxes due in just 2 months, small businesses are forecast to be under the most scrutiny in 2013. Envision Capital informs on the flags that will cause an audit for a business, and how to be prepared.

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A well-planned business may have funds set aside for their expected tax payments every year, but those businesses that don’t have the luxury of being prepared may need some extra assistance, and there is a niche loan for that.

With taxes due in just 2 months, small businesses are forecast to be under the most scrutiny in 2013. The IRS reported an all time high of $450 billion in unpaid taxes per year in a press release from January 2012. The IRS also issued it’s “2013 Audit Guidelines for Small Businesses,” and highlighted areas of focus that will cause them to audit a business.

Areas of Focus for Audit as reported by the IRS:

  •     Fringe benefits, such as the use of company cars, especially luxury cars
  •     The small business credit for employee health insurance
  •     International transactions: hidden overseas assets and offshore transactions
  •     Partnerships, especially those reporting large losses
  •     S corporations, with a focus on various issues related to losses, income, distributions and avoidance of Social Security taxes, among other things
  •     Employment taxes related to misclassification of employees as independent contractors

Tax day is around the corner, and the often overlooked small business could be at risk for being audited. It is important to be financially prepared in such an instance. Owing a large lump sum right away may have businesses dreading that call from their accountants very soon. “A well-planned business may have funds set aside for their expected tax payments every year, but those businesses that don’t have the luxury of being prepared may need some extra assistance, and there is a niche loan for that.” – Envision Capital reports.

This alternative loan, a Merchant Cash Advance (MCA), has fewer restrictions and supports being used for tax purposes. A Merchant Cash Advance is considered the "go-to" for small businesses needing access to funds. One of the benefits of a MCA is that instead of a large quarterly or annual lump sum, you are able to make small daily payments, and in certain programs payments are revenue based. A merchant cash advance can lend some peace of mind when taxes are due in that it can be acquired quickly, and have your funds usually within 7 business days.

The information provided in this article is for informational purposes only and should not be relied upon as tax advice.

About Envision Capital Group

Envision Capital Group is an Orange County, CA based top equipment financing & equipment leasing company, offering several types of financing: lease financing, equipment loans, working capital & merchant cash advance programs, as well as servicing vendor financing needs. They assist any business type, any credit type, nationwide, in getting the funding their businesses need to grow. To learn more, visit: envisioncapitalgroup.com.

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