Are you tired of all the double-talk and confusing lingo that accompanies most tax forms and government regulations? If so, you're not alone. Fortunately, several small business advocates have recognized that running a business is hard enough without adding the complication of interpreting laws, procedures and forms to ensure you are in compliance with federal mandates. Change may be on the horizon.
This week, the National Association of the Self-Employed (NASE) stated in a press release that both the House and Senate have introduced legislation, "Plain Language in Government Communications Act" requiring the federal government to write tax forms (and other communications) in simple, easy-to-understand language. It's anticipated that this would particularly help micro-businesses, such as indepedent professionals, consultants and freelancers, spend "more time and money on their business instead of complying with confusing regulations."
It's difficult to put into words, in a plain, straight-talking kind of way, exactly how much of difference this proposed legislation could make in a typical small business. Fortunately, the press release from NASE found a pretty clear illustration:
"The IRS Form 4562, which relates to Depreciation and Amortization, and its corresponding publications are a prime example of vague forms and publications that would benefit from simplification and plain language. A small business owner who purchases a $1,500 computer will have to read 16 pages of obscure instructions to fill out this two page form. Additionally, the IRS indicates that the estimated burden for taxpayers who file this form is approximately 47 hours."
It seems pretty clear. The idea of "plain talk" just might work after all. But, not to pick on the IRS or the SBA - there's a lesson for all of us in this. Next time you provide a statement of work or develop a contract for a client, it may serve everyone's best interest if you avoid some of the legalese and instead opt for telling it like it is. If the federal government is willing to give it a try, then why not?