subject: How to avoid or resolve a tax audit and protect the future of your company [print this page] tax audits are increasing, as the government stepped up enforcement IRS to finance the deficit reduction. Individuals and businesses large and small Will the current economic crisis financially crippled performance fail to satisfy their taxes.
Business-test on the rise, it is more important than ever to know what triggers an audit, how to prevent the head and getting help when tax is the IRS after you.
For those wishing toStart and / or your company grows, it is important to know how to avoid taxation problems, particularly payroll tax problems. I know because I am an entrepreneur himself. Furthermore, 25% to 30% of my customers are small businesses with tax problems tax.
I always say that life people struggling to overcome tax, its burden, that knowledge is power and the key to getting a new lease on your financial.
What can trigger an inspection?
The number one red flag in terms of a tax audit claimed false business expenses. The proceeds of your expenses "payments should be. Many people in legitimate businesses used for land tax in trouble if they used these funds for their own purposes and incorrectly identify it as legitimate business expenses. This statement can be viewed as your failure to provide additional income on.
Avoid payroll taxProblems.
In general, because income tax is the "kiss of death" for many small businesses, whether they run their units as a sole proprietorship, company ("C" or "S" does not matter), or LLC. Many lose their business. When it comes to payroll tax debt, the IRS has the authority to collect and relentless power. You have the power to lock the front doors of business without obtaining a court order.
Hire a good accountantAccounts and to avoid IRS tax problems.
A simple way to avoid problems is a good set tax accounting. You should know an accountant can double accounting. Moreover, the recruitment of an experienced CPA or EA to prepare the return a small annual investment that can pay is great! I do not recommend doing your taxes, if they are only W-2 wage earner that takes the standard deduction (in other words, someone who does not itemize or havenot yet reimbursed employee business expenses).
The file your tax return on time, even if you do not have the money to pay tax bill.
If you can not afford to pay taxes, you can still file your return on time and save about 25%, the absence of proper file off the bat. What many do not realize is that filing an extension only place the inevitable, why not pay for an extension of time is just an extension of time to a file. Thisalso important to know that this is a crime in this country is legally obliged to submit declarations in arrears.
Penalty proof your small business at the request of the IRS tax extensions'.
When filing for an extension, it is important to avoid underpaid taxes. If you are forced to an extension (for non-organized all the information), you need a control with the extension (file in less than what you have withheld or paid in quarterly estimates by 2008) for an amount of 100% of the overall tax liability for 2007 to avoid taxes, the penalty for failure to pay tax. You can even punishment by proof of payment in 90% of what is thought to had to go to 2008.
