April 17, 2007 -- Citing the growing complexity of federal tax laws, most small-business owners are turning to accountants, lawyers, and other tax professional to prepare their returns, a recent survey found.
In a national survey of 750 business owners with fewer than 250 employees, 88 percent said they turned over the tax returns this year to a professional, according the National Federation of Independent Business, a Washington-based lobby. The more workers they employed, the less likely they were to prepare their own tax returns, the survey found.
Among all the provisions of the Federal Tax Code, small-business owners most frequently turned to pros for depreciations, methods of accounting, amounts subject to self-employment tax, capital gain and losses, and the Alternative Minimum Tax, the survey found.
"The risk of increased errors resulting from an overly complex tax code has forced small-business taxpayers to seek outside help," William Dennis, the group's executive director of research, said in a statement.
Dennis said increased complexities in the code boosted administrative costs for business owners, while causing undue frustration.