A newly released study from the Office of Advocacy of the SBA documents the tax burden among small business owners in bankruptcy. The data suggest that the tax burden is more pervasive among small business owners in bankruptcy than among consumer petitioners. While less than one-quarter of all consumers in the bankruptcy sample reported tax debts, more than half of individual small business owners reported owing some tax debts.
“This is more evidence that we need to tear up the current income tax code and replace it with a simple and less burdensome approach,” argues Belmont University Professor (and golf fanatic) Jeff Cornwall (pictured).
And, indeed, there’s plenty to complain about in the tax code. But, for the time-being, it also argues for better entrepreneurial educationa nd the importance of professional tax and accounting services.
GET THE FREE DOWNLOAD (PDF, 39 pages): The Tax Debts of Small Business Owners in Bankruptcy