Small Businesses Support Tax Simplification: CompTIA Report
According to the study, SMBs wrestle with a number of costly and complicated tax provisions.IT trade association CompTIA released a study that took a look at how taxes affect small and midsize businesses across the country, finding that overall, across both business size and form, opinions of the tax system were similar in one clear respect: An overwhelming majority of respondents noted that tax compliance is especially challenging for midmarket companies because they do not have the resources or scale to comply with complicated tax laws. According to the study, SMBs wrestle with a number of costly and complicated tax provisions. Those surveyed cite payroll tax filings, alternative minimum tax requirements and employee retirement as some of the most difficult tax code provisions from a compliance perspective. This is especially worrisome because in the last ten years, 15 percent of midmarket businesses report being subjected to a federal or state tax audit, adding to tax compliance costs.
"Small and medium-sized businesses are the job creators in this economy," said Todd Thibodeaux, president and chief executive officer of CompTIA. "Unfortunately many of these same companies are forced to divert resources away from operating their businesses toward complying with ever more complicated tax structures. CompTIA is working on behalf of our members and in partnership with TECNA to address these issues head on and find solutions for small companies so they can thrive in a straightforward tax environment."