Advice from Equipment Financing Experts Who Review Financials Every Day
As a leading provider in equipment financing for small and mid-sized businesses, our team reviews applicants’ financial documents every day to provide financing for essential business equipment. Because Global Financing & Leasing Services (GFLS) also is a small business, we stay on top of issues that affect us and our clients. Increased IRS funding is one of these topics.
The Internal Revenue Service (IRS) will see its budget increase by tens of billions of dollars over the next decade. Additional funds are supposed to:
- Support criminal investigations
- Provide cryptocurrency monitoring and compliance
- Purchase vehicles for enforcement personnel
- Bolster the Service’s workforce and budget after years of declining numbers
- Collect billions of dollars in taxes owed to fund Biden’s administration’s spending package
Over the past decade, the IRS’s budget cuts and fewer resources have led to a decrease in the percentage of audits. So, with increased funding, one might presume that the number of future audits will increase. There are statistics that point to four million partnerships and 4.8 million S-corporation tax returns that currently aren’t audited much at all. However, administration spokespeople have gone on record stating that auditing average citizens isn’t on the radar, but enforcing tax laws already on the books and modernizing the IRS’s technology are.
Advice from Equipment Financing Experts Who Review Financials Every Day
The Congressional Budget Office’s report states, “The proposal, by contrast, would return audit rates to the levels of about 10 years ago; the rate would rise for all taxpayers, but higher-income taxpayers would face the largest increase. In addition, the Administration’s policies would focus additional IRS resources on enforcement activity aimed at high-wealth taxpayers, large corporations, and partnerships. CBO estimates that if the proposals were enacted, tax compliance would be improved, and more households would meet their obligation under the law.”
Business owners should keep their accounting in order at all times anyway, but for those who don’t or have it on their to-do list, now is the time.
Better yet, hire an accounting expert and tax pro who can help you take advantage of tax-saving strategies. Most business owners aren’t tax specialists, so you could be leaving money on the table. CPAs are experts in developing short- and long-term tax strategies specific to your business and industry and help ensure you are taking your due deductions. In terms of equipment financing, a CPA can help your business benefit from tax considerations, like the Section 179 deduction, as well as determine the implications of an operating versus capital lease.
READ MORE: 2022: The Year of Working with Equipment Financing and Accounting Professionals
Accounting and tax experts will evaluate your various tax options to advise on how to conduct business and personal transactions in order to reduce or eliminate your tax liability, as well as help keep you in compliance of tax laws. This is critical now more than ever with the IRS’s budget increases.
Business owners often find themselves under tighter scrutiny compared to wage-earners who earn a similar level of income. Why? Because business owners have more options to minimize tax bills. Your accounting and tax pros can help you create a strategy to keep your company in the lowest tax bracket possible, which can involve the timing of purchasing or leasing essential business equipment and how you claim the deduction.
READ MORE: How do Capital Lease Tax Advantages Compare?
If you’re considering equipment financing, talk to your accountant and talk to us. GFLS is a direct lender able to approve credit with our in-house funds with a typical turnaround time is 24 to 48 hours. When other lenders say no to financing equipment, GFLS can often say yes, so tell us about your business goals, financing needs and let’s take a look at the options.