One of the stories we've been following in this blog is role that tax law will pay in the implementation of the Affordable Care Act (ACA). As we discussed in our April 16 post, the ACA - otherwise known as Obamacare - will affect taxes in several ways.
Federal taxes are of course enormously important. They affect every single taxpayer across the nation. Indeed, their reach goes overseas as well, to Americans living abroad or with bank accounts there.
Employment taxes can be a big headache for businesses. After all, state and federal income tax withholding is only part of it. There is also withholding for Social Security and Medicare taxes and payments to match employee contributions.
Small businesses are often lauded by politicians of all types for their role in role in driving the economy and creating jobs. But small employers face many practical challenges in trying to make their businesses work. Some of those are tax challenges.
The word "taxes" is a very general one. In practice, there are many different types of taxes. In part, this is because there are so many levels of government: not only federal, but also state and local. It therefore isn't only the decisions of the IRS that can loom large over taxpayers. In California, the decisions of the Franchise Tax Board can do so as well.
Understandably, the news about tax law has been dominated in recent weeks by the nation's struggle to avoid the Fiscal Cliff. The bill that passed yesterday was hardly a comprehensive "grand bargain." But it averted the cliff by blocking immediate income tax increases for most Americans and postponing painful spending cuts.
If you are small business owner with multiple bank accounts, you've got to be careful what you put where. The IRS may very well be looking over your shoulder. If the agency requires an audit, it could seek to show that you tried to evade taxes by improperly moving money among the different accounts.