Keeping current with federal tax regulations is no joke. A smart business owner will be proactive about staying on top of tax codes. Since tax regulations are very complex, it's a good idea to get started now.

Even though the aggregate federal tax codes are dauntingly complex, you can bite them off in manageable chunks. Instead of trying to digest it all at once, set aside some time a few days a week or even once a month to do your homework. Before you get started, as yourself these questions:

1. Are you current on IRS tax codes?

2. Are you getting--and giving--the information you need to comply with federal tax codes and regulations?

3. Which IRS tax codes do you need to investigate more thoroughly?

Action Steps
The best contacts and resources to help you get it done

Keep current with the latest tax code and regulations as they're updated.

Sure, you have an accountant. But you're ultimately in charge of the business and so it's still your responsibility to keep current on the latest IRS tax regulations and make sure you stay on track. Make it a point to stay involved and stay informed about the latest changes--after all, you're in this as a team.

I recommend: Before you turn in your next quarterlies, check the IRS Tax Changes for Businesses page for changes to business tax codes. You can also check for Tax Tips and Updates here.

Keep that paperwork moving

It's up to you to get your accountant the information he needs to keep your business in line with the income tax regulations while maximizing any possible refunds or minimizing payments. You also need to make sure that you're getting the right information in return. Some people make a checklist of questions before visiting their doctor; you should take one when you visit your accountant.

I recommend: Every legitimate deduction is vital. Educate yourself by reading the Business Deductions section of the CCH Financial Planning Toolkit. Then double-check that you're getting all the deductions you're entitled to by checking your records against a small business tax deduction list. Finally, skim through a checklist for preparing and reviewing business tax returns and make sure that your accountant has addressed every point listed. Don't be afraid to ask questions and bring up issues that you feel have been neglected or need more information about.

Dig a little deeper into IRS tax codes and regulations

As a business owner you've got lots of disposable free time, right? Wrong. But it's still worth investing some time to make sure you thoroughly understand the tax code regulations that affect you the most.

I recommend: The point of your business is to generate income, so you'd better be intimately familiar with tax codes relating to income taxes like this listing from Cornell. If you have employees, read up on tax codes relating to employment taxes. All of this should make sense. If anything doesn't jive, it's time to ask your accountant for help.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  It's worth the investment of time to keep personally acquainted with IRS tax codes. This is one area of your business that you can't afford to neglect or let somebody else take charge of--but it's also important to have a second pair of eyes helping you out. Train your most trusted manager or employee to help you supervise compliance with IRS tax codes.