J.K. Lasser's Small Business Taxes 2023

Introduction

Small businesses are vital to the U.S. economy. Small businesses account for 99.9% of all firms, employ 46.8% of the country's private sector workforce, and contribute 43.5% of the nation's gross national product.

It's estimated there were more than 33.2 million small businesses—sole proprietorships, limited liability companies, partnerships, S corporations, and C corporations. While COVID‐19 certainly hit many small businesses hard, the pandemic did not stop interest in entrepreneurship. New businesses are forming at numbers greater than before the pandemic. The gig economy has expanded and small businesses continue to be present on Main Street, farms, homes, and anywhere else that a business can be found.

Small businesses fall under the purview of the Internal Revenue Service's (IRS) Small Business and Self‐Employed Division (SB/SE). This division services approximately 57 million tax filers, including 41 million individuals filing Schedules C, E, or F, as well as (3.8 million partnerships and 6.8 million corporations with assets of $10 million or less), and about 7 million filers of employment, excise, and certain other returns. The SB/SE division accounts for about 40% of the total federal tax revenues collected. The goal of this IRS division is customer assistance to help small businesses comply with the tax laws.

There is also an IRS Small Business and Self‐Employed Tax Center at https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed where you'll ...