One of the biggest changes of the new tax law is that it now provides for a flat 21% tax rate for corporations. The law created a potentially generous new tax break, Section 199A, also known as the pass-through deduction. One of the most significant changes made to the tax code through tax reform was a major reduction in the corporate tax rate, from 35% to 21%. The new tax bill provides potential tax reduction for most business taxpayers, especially large corporations, beginning in 2018. As part of the new bill, the pass-through tax deduction is up 20% of qualifying business income. Since pass-through businesses now account for more than half of the business income and employment in the United States, any business tax reform needs to address the individual income tax code as well as the corporate income tax code.
Each corporation included on a consolidated or combined return must itself be subject to Virginia income tax. You should keep your tax records for at least three years from the due date of the return or the date the return was filed, whichever is later. A domestic corporation must file a Virginia income tax return each year, even if it has no income to report. You may not need to make estimated tax payments if you have enough income tax withheld from your paycheck. The election to file on a separate, consolidated, or combined basis is made in the first year in which a group of affiliated corporations becomes eligible to file a consolidated or combined return in Virginia. The number and amount of estimated income tax payments you need to make are based on when you became liable for estimated tax payments.
A tax plan helps you make the most of your hard earned money whether it is for personal or business use. You'll learn about writing a business plan, determining the legal structure of your business, and more. The structure you choose will impact your ability to raise money, your tax bill, and what happens if your business is sued. Where there is no double taxation, there can be the advantage of deferring the payment of tax. When determining a type of organizational structure you will adopt for your latest business venture, or if you are interested in restructuring your current company, you will have several options to choose from. A well written business plan helps explain to others what you are doing, and clarifies the business opportunity in your mind.
An installment agreement is when you make regular payments on your tax debt to the IRS. Everyone has heard the statistics about tax audits and how it is very unlikely to receive one in a given tax year, but over your lifetime it is more likely than not that you will get audited. Contrary to horror stories commonly heard, the IRS is interested in working with you to resolve your tax balances. As long as you did not willfully withhold the info, you can still qualify for the voluntary disclosure program.