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Small Business: Taxpayers Face Many Layers of Requirements

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Report Type Reports and Testimonies
Report Date April 12, 1999
Report No. T-GGD-99-76
Subject
Summary:

Small business are an important category of taxpayers. Not only do they account for nearly half the total taxes collected each year, but they also have extensive interactions with the Internal Revenue Service (IRS) about some very difficult and complex tax issues. This testimony focuses on federal taxes in relation to the following four types of small businesses (including farmers): sole proprietorship, partnership, subchapter S corporation, and corporation. GAO discusses (1) the federal filing, reporting, and deposit requirements that apply to small businesses; (2) the actual experience of small businesses in meeting their requirements, including their involvement in IRS' enforcement processes; (3) the burden that small businesses can face in complying; and (4) IRS' efforts to reduce small businesses' compliance burden and improve customer service, especially IRS' planned reorganization.

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