Tax Expert Becky Younger Find out how to stay current with ever-changing IRS rules and regulations.

If there's one thing harder than filling in every last boxon every last form to complete your taxes error-free, it'skeeping up with changes in the tax laws. With a million and onethings to do every day, how can you stay abreast of tax news thataffects your business' coffers?

We've asked KPMG partner Becky Younger to help you sortthrough some of the changes that will affect your 2000 taxes, aswell as how you can stay current with new changes in the comingyears.

BIZ Experiences.com: How can small-business owners best keepup with tax law changes? Is this something they should rely ontheir tax professional for?

Becky Younger: Many significant tax law changes arecovered in newspapers and business publications. I think anyone inbusiness should have a regular source of news-like theWall Street Journal and their local newspaper-whichincludes some tax news. The tax authorities communicate changesthat affect how and when certain forms have to be filed and taxespaid. I'd advise business owners to carefully read anycorrespondence they receive directly from a tax authority. I dothink that a tax advisor, when properly engaged, should communicatechanges that provide deduction opportunities for their clients orhave a significant impact on the tax liability of the companyand/or the owners.

BIZ Experiences.com: Many business owners are now doingtheir own taxes using tax software. Is this advisable?

Younger: It depends on the complexity of the business andthe sophistication of the owner in the area of taxes. Also, itdepends on how much time the business owner wants to devote to thisproject. The cost of having a tax return prepared professionallymay be small compared to the opportunity cost of having yourattention diverted to understanding the tax laws.

BIZ Experiences.com: Is a tax professional who would advisea business owner different from a CPA? How often does a businessowner need to be in contact with his or her tax professional?

Younger: Many "accountants" are capable ofproviding good tax advice. Many are not. It depends on theirbackgrounds and level of interest in the subject. So it'simportant for small-business owners to choose their advisorscarefully. Get references, meet with them more than once, ask hardquestions. Unless the accountant's sole responsibility is tomaintain books and records, they should be a Certified PublicAccountant with a current license to practice in the state wherethe main office of the BIZ Experiences's business is located. Oncechosen, the advisor should be in contact on an "asneeded" basis. If the business is profitable, the owner shouldget input at least quarterly about making estimated payments forincome taxes. Informal meetings are also helpful to keep theadvisor aware of current developments in the business owner'scompany and the owner's objectives. The advisor should becontacted immediately if any significant transaction is beingconsidered.

BIZ Experiences.com: How does the repeal of the InstallmentMethod Accounting change affect small businesses?

Younger: Accrual basis taxpayers were restricted fromusing the installment method based on a change in the law that wasoriginally effective for transactions after December 16, 1999. Atthe end of December, that change was repealed retroactively, sothat accrual method taxpayers may use the installment method fortransactions that would have qualified under prior law.Small-business owners who were contemplating making sales, but wereconcerned about having the cash to pay taxes on the full amount ofthe gain without receiving all the cash proceeds, may want toreconsider those transactions. If a sale occurred and either: 1)the installment method wasn't used to report the taxable gainin a tax return that has already been filed, or 2) the installmentmethod wasn't used when calculating the amount of estimatedpayments to make, the returns should be amended and futureestimated payments adjusted to reflect any benefit of theinstallment sale rules. If using the installment method wouldcreate a negative result, it may be advisable to not use thatmethod.

BIZ Experiences.com: Are there any new deduction changesthat small-business owners should be aware of?

Younger: The calculation of tax benefits associated withmaking foreign sales has changed significantly. The standardmileage rate has moved from 31 cents for 1999 to 32.5 cents for2000. Although there were interesting legislative changes proposedlast year, not much was actually passed.