Small businesses in the U.S. face a heavy burden when complying with income and employment tax laws, according to preliminary results of an IRS survey of compliance burdens
Among the tax activities performed by businesses with less than $10 million in assets—including recordkeeping, working with a paid professional, completion and submission of forms, making estimated tax payments and tax planning—the most time was spent keeping records.
The survey also found that C corporations spent more time on compliance than S corporations and partnerships.
Source: Measuring the Tax Compliance Burden of Small Businesses , by Donald DeLuca, et al., 2005, and Tax Analysts, www.taxanalysts.com.