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DSA has partnered with the Internal Revenue Service Small Business and
Self-Employed Division to provide you with a one-stop resource for many of your tax questions. Both direct selling companies and their distributors will find information on this page that will assist you with your tax questions.
NEW! NASE Resources
NEW! Simplified Option for Home Office Deduction
Do you work from home? If so, you may be familiar with the home office deduction, available for taxpayers who use their home for business. Beginning this year, there is a new, simpler option to figure the business use of your home.
NEW! How to Get a Transcript or Copy of a Prior Year Tax Return
Businesses and individuals who need a tax account transcript should use Form 4506-T, Request for Transcript of Tax Return.
NEW! Eight Tips for Taxpayers Who Owe Taxes
While most taxpayers get a refund from the IRS when they file their taxes, some do not. The IRS offers several payment options for those who owe taxes.
IRS Smartphone App IRS2Go Now Available in Spanish
The Internal Revenue Service has released IRS2Go 3.0, an update to its smartphone application that offers practical tax tools and information for the first time in either Spanish or English. The free mobile app offers taxpayers a number of safe and secure ways to access popular tools and the most up-to-date tax information. For the new version, IRS2Go is available for the first time in Spanish. The taxpayers’ phone language settings determine whether the IRS2Go content appears in English or in Spanish.
IRS Expands Voluntary Worker Classification Settlement Program
The Internal Revenue Service has expanded its Voluntary Classification Settlement Program (VCSP) allowing taxpayers to reclassify their workers as employees for future tax periods. Modifications to the program are described in Announcement 2012-45 and in questions and answers, posted on IRS.gov. Employers accepted into the program will generally pay an amount effectively equaling just over one percent of the wages paid to the reclassified workers for the past year. No interest or penalties will be due, and the employers will not be audited on payroll taxes related to these workers for prior years.
IRS Announces Simplified Option for Claiming Home Office Deduction Starting in 2013
The Internal Revenue Service announced a simplified option that many owners of home-based businesses and some home-based workers may use to figure their deductions for the business use of their homes. The new optional deduction, capped at $1,500 per year based on $5 a square foot for up to 300 square feet, will reduce the paperwork and recordkeeping burden on small businesses by an estimated 1.6 million hours annually. The new simplified option is available starting with the 2013 return most taxpayers file early in 2014. Further details on the new option can be found in Revenue Procedure 2013-13, posted on IRS.gov. Revenue Procedure 2013-13 is effective for taxable years beginning on or after Jan. 1, 2013. More information about this simplified option is available here.
Self-Employed Health Insurance Deduction
The IRS wants to make sure self-employed individuals take advantage of a generally available health insurance deduction.
IRS Tips for Starting a Business
These are links to basic federal tax information for people who are starting a business, as well as information to assist in making basic business decisions.
American Recovery and Reinvestment Act (ARRA) of 2009
If you have questions regarding the ARRA, the IRS has a special Web page designed to assist taxpayers.
DSA webcast: Direct Selling and Your Taxes
Direct sellers have a number of unique tax circumstances and it's important for everyone who works with the tax returns of direct sellers to be educated about the law. DSA has created an informational video and compilation of forms and other relevant information as a resource for those who prepare, file and audit independent contractors tax returns, to shed some light on the IRSs rules for matters relating to income and business expenses by direct sellers. Click here to view the video and download the additional resources
Direct Selling Audit Technique Guide
DSA worked closely with the Internal Revenue Service (IRS) to prepare an Audit Technique Guide (ATG). The ATG will be used by IRS examiners and auditors when reviewing direct sellers returns. Publication of this document is recognition by the IRS of the importance of the direct selling industry, as only a few ATGs are published each year.
Small Business Self-Employed Home Page
If you run a small business or are self-employed, the Small Business Self-Employed community website is for you!
Checklist for Starting a Business
If youre starting a new business and you dont know where to begin, this is the site for you.
Starting a Business and Keeping Records Publication 583
This publication provides basic federal tax information for starting a business. It also provides information on keeping records and illustrates a recordkeeping system.
Small Business Resource Guide on CD
This CD provides critical tax information to small businesses including forms, instructions, and publications. The CD also provides valuable business information from a variety of government agencies, non-profit organizations, and educational institutions. The CD contains essential startup information needed by new small businesses in order to be successful. The design of the CD makes finding information easy and quick and incorporates file formats and browsers which can be run on virtually any desktop or laptop computer.
Virtual Small Business Workshop on CD
This CD presents a series of topics taught by IRS instructors. These topics include payroll taxes, electronic filing, and record keeping.
Or view the online classroom
Introduction to Federal Taxes on CD
This CD introduces new small business owners and self-employed entrepreneurs to IRS tax law in an easy-to-understand format.
Electronic Tax Filing Resource Guide
With the start of tax season, you might find the Electronic Tax Filing Resource Guide to be helpful. It's full of helpful articles and tools that the IRS encourages you to use when preparing your taxes.
Understanding Depreciation and the Section 179 Expense Deduction
Computing deductions for property you use in your business can be challenging. In general, if business property is expected to last more than one year, the entire cost cannot be deducted as a business expense in the year you place it into service. It must be depreciated over the propertys useful life (as defined by the Internal Revenue Code).
Most types of tangible property (except land) such as buildings, machinery, vehicles, furniture, and equipment are depreciable. Likewise, certain intangible properties such as patents, copyrights, and computer software are depreciable.
You can elect to recover all or part of the cost of certain qualifying property (not buildings), up to a limit, by deducting it in the year you place the property in service. This is the section 179 deduction.
Related Links: FS-2006-27, Depreciation Reminders Publication 946, How to Depreciate Property
Small Business Federal Tax Responsibilities
IRS has a new publication to help self-employed taxpayers, owners of small businesses and the IRS employees who deal with them. Publication 4591, Small Business Federal Tax Responsibilities, is a tri-fold brochure that summarizes current IRS resources as well as other government resources available to help small businesses.
Fact Sheet: Home Office Deduction Reminders
Overstated adjustments, deductions, exemptions and credits account for up to $30 billion per year in unpaid taxes according to IRS estimates. In order to educate taxpayers regarding their filing obligations, this fact sheet explains the rules for deducting home office expenses.
IRS Urges Taxpayers to Avoid Common Mistakes
Deducting Business Expenses
Deducting Business Supply Expenses
The tax law allows for the deduction of business supply expenses. This fact sheet, the seventh in a series, helps taxpayers understand the rules pertaining to business supply expense deductions.
Publication 911 is for direct sellers for use in filing tax returns.
Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is a credit for people who earn low-to-moderate incomes. Earned income includes all the taxable income and wages you get from working for someone who pays you or you work in a business you own. For more information, please see the EITC Information Web page.
Home Office Deductions
Tax Information for Retirement Plans
Choosing A Retirement Solution for Your Small Business
IRS Forms and Publications
These forms for the small business owner and the self-employed are now available on the IRS web site.
Electronic Federal Tax Payment System (EFTPS)
EFTPS has been a service that businesses and individuals can use to pay all their federal taxes electronically, 24 hours a day, 7 days a week, via the phone or personal computer (PC) software. Now taxpayers can pay via the Internet. Visit the EFTPS web site for all the latest information! Or visit the Department of Treasurys Financial Management Services web page on EFTPS http://www.fms.treas.gov/eftps/index.html
Tax Information for Businesses
Check on Refund Status for Individuals
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