February 09, 2013 (Press-News.org) Surviving a small business tax audit
Article provided by Baker Law Firm
Visit us at http://www.cttaxlawyer.com
No matter how meticulous the records are kept, perhaps nothing strikes fear into the heart of a small business owner than an audit notice from the Internal Revenue Service. Although the process can be stressful, the following tips can help you avoid being audited, as well as help you deal with the tax audit process.
Avoiding an audit
Although every tax return filed can be subject to an audit, the IRS is more likely to choose to audit a small business if there are certain mistakes on the tax return. These tips can help you avoid the red flags that can trigger an audit:
-Don't mix business and personal expenses. The IRS looks for instances where personal expenses are being claimed as business expenses. Experts recommend using a separate credit card for business expenses.
-Report your full income. Many businesses unintentionally misrepresent their income by reporting their net income rather than their gross income.
-Be careful with deductions. If you are claiming deductions that are unusual, be sure to provide a detailed description of the deduction on your tax return, so the IRS can easily verify it. The IRS routinely red flags deductions classified as "miscellaneous."
-Timing is everything. If you are late on meeting IRS deadlines, it can make you appear disorganized and trigger an audit. File your 1099s and quarterly estimated tax statements on time.
Handling an audit
Even if your tax return is error-free, there is always the risk of an audit. However, these tips can help you get through the process:
-Keep good records. The IRS can look at any records that were used to prepare your tax returns. If you go through your records and organize them in a logical way, it will help refresh your memory for the audit meeting.
-Organize, organize, organize. Ensure that the records are neat and clear. Tax auditors will often give you the benefit of the doubt if a problem arises, if your records are clear. Conversely, the IRS punishes sloppy recordkeepers by digging deeper.
-Anticipate any problems. Check your records ahead of time and ensure that documentation or tax law substantiates your income and deductions.
To document your income, deduction and expense, the tax auditor may ask you to produce the following documents:
-Bank statements and receipts. If you paid cash for something, make a handwritten note to show the payments.
-Credit card statements. Note that credit card statements will often not be sufficient to show the business nature of the expense--keep other documentation to prove this.
-Business records. There is no legal requirement for a business to keep formal books, but the auditor is entitled to see any business records that are kept.
Consult an attorney
Tax law is complicated and changes every year. If your business is the subject of an IRS audit, contact an experienced tax attorney. An attorney can assist you with the audit process and ensure the best possible outcome.
Surviving a small business tax audit
No matter how meticulous the records are kept, perhaps nothing strikes fear into the heart of a small business owner than an audit notice from the Internal Revenue Service.
2013-02-09
ELSE PRESS RELEASES FROM THIS DATE:
Overview of prenuptial agreements in California
2013-02-09
Overview of prenuptial agreements in California
Article provided by Law Offices of Victoria S. Linder
Visit us at http://www.sacramentoattorneys.net/
California residents entering into a marriage may wonder if they need a prenuptial agreement. Although most couples do not want to think about divorce before even being married, creating a prenuptial agreement is a practical approach to dealing with the reality that a substantial percentage of marriages end in divorce. A well-drafted prenuptial agreement can help protect valuable assets and prevent future complications.
What ...
Hiding assets is common during divorce
2013-02-09
Hiding assets is common during divorce
Article provided by Law Offices of Victoria S. Linder
Visit us at http://www.sacramentoattorneys.net/
California residents know divorce is complicated. It is even more difficult when one spouse attempts to hide assets during the divorce process.
Unfortunately, lying about assets is more common than most people think. According to the National Endowment for Financial Education, 34 percent of adults in the United States admit to lying to a spouse about finances or debt. Additionally, over half admit to hiding a minor purchase ...
Strong defense for increased enforcement of California DUI laws
2013-02-09
Strong defense for increased enforcement of California DUI laws
Article provided by Law Office of Gregory M. Alonzo
Visit us at http://www.alonzocriminaldefense.com
Driving under the influence of alcohol can be common, especially during the year-end holiday season. In recent years, 13 county law enforcement agencies in and around Santa Clara, California, have strengthened DUI enforcement through what has become an annual lookout program called "Avoid the 13."
In the last two weeks of 2012, Santa Clara County's law enforcement agencies made 432 DUI arrests. ...
The advantages of filing for personal bankruptcy
2013-02-09
The advantages of filing for personal bankruptcy
Article provided by Guthrie Law Office
Visit us at http://www.guthrie-law.com
Even now, in the years following the "great recession," when many people have found themselves in dire financial straits, many who could qualify for a personal bankruptcy would still never consider filing for one. First, they think of the stigma attached to it. Then, if they can get past that, they contemplate the effect of a bankruptcy filing on their credit report and that fact stops them in their tracks.
But when someone ...
Mediation may help couples going through divorce
2013-02-09
Mediation may help couples going through divorce
Article provided by Vaught Law Firm, P.C.
Visit us at http://www.austindivorcelawyer.com
There are many reasons why a marriage may break down. When a married couple decides to end their relationship, it can be surprising how contentious a divorce can become. Issues that can be quickly resolved turn into costly and time-consuming legal battles, pitting the soon-to-be ex-spouses against one another. Individuals may find themselves spending a lot of emotional energy trying to get through the divorce as quickly as possible.
There ...
Is Chapter 7 or Chapter 13 bankruptcy right for you?
2013-02-09
Is Chapter 7 or Chapter 13 bankruptcy right for you?
Article provided by Genova & Malin, Attorneys at Law
Visit us at http://www.hudsonvalleybankruptcylawyers.com
Bankruptcy is a legal process that allows consumers to manage their debts. There are two types of bankruptcy available to consumers: Chapter 7 and Chapter 13. In a Chapter 7 bankruptcy, a consumer's debts are discharged, meaning that they are no longer responsible for paying those debts. In a Chapter 13 case, consumers work with the courts to establish a payment plan, so that creditors can be paid ...
Bankruptcy remains common in Tennessee despite national decrease
2013-02-09
Bankruptcy remains common in Tennessee despite national decrease
Article provided by Law Office of W. Thomas Bible, Jr.
Visit us at http://www.tombiblelaw.com
Many people are pleased when they hear that the number of individuals filing for bankruptcy each year has been declining nationwide. According to a law professor who reviewed data from the National Bankruptcy Research Center, nationwide bankruptcy filings for individuals dropped by 12 percent in 2011 from the previous year. In 2011, there were 5,800 bankruptcy filings per million individuals. This means that ...
Controversial Pop Warner game highlights dangers of head injuries
2013-02-09
Controversial Pop Warner game highlights dangers of head injuries
Article provided by Clark, Hunt, Ahern & Embry
Visit us at http://www.chelaw.com
In 2012, the NFL set a new record: 111.3 million worldwide tuned in to watch the New York Giants beat the New England Patriots, making it the most watched television event in history. While a crushing defeat for the Bay State -- and one most would rather forget -- this record-breaking viewership underscores our national love affair with the game. And with approximately 4 million young adults playing football each ...
Cooperative lawsuit illustrates risks of 'unintentional' discrimination
2013-02-09
Cooperative lawsuit illustrates risks of 'unintentional' discrimination
Article provided by Pentiuk, Couvreur & Kobiljak, P.C.
Visit us at http://www.pck-cooplaw.com
Cooperative housing associations are unique in that the members screen and select new residents to the community. While housing cooperatives do have a certain degree of latitude in deciding who will be allowed to join the community, it is important to remember that cooperatives are still required to follow the anti-discrimination policies outlined in the Fair Housing Act.
The FHA covers both ...
Inefficient banks fall short in modifying mortgage loans
2013-02-09
Inefficient banks fall short in modifying mortgage loans
Article provided by Durand & Associates, P.C.
Visit us at http://www.durandassociatespc.com/
The financial crisis may be easing somewhat, but many Texas families still face the possible loss of a home to foreclosure. A federal program to help homeowners has been less effective than hoped because large banks have done such a poor job implementing its provisions.
Mortgage loan modifications save homes
When a borrower falls seriously behind on mortgage payments, there is an alternative to the bank foreclosing ...
LAST 30 PRESS RELEASES:
Thirty-year mystery of dissonance in the “ringing” of black holes explained
Less intensive works best for agricultural soil
Arctic rivers project receives “national champion” designation from frontiers foundation
Computational biology paves the way for new ALS tests
Study offers new hope for babies born with opioid withdrawal syndrome
UT, Volkswagen Group of America celebrate research partnership
New Medicare program could dramatically improve affordability for cancer drugs – if patients enroll
Are ‘zombie’ skin cells harmful or helpful? The answer may be in their shapes
University of Cincinnati Cancer Center presents research at AACR 2025
Head and neck, breast, lung and survivorship studies headline Dana-Farber research at AACR Annual Meeting 2025
AACR: Researchers share promising results from MD Anderson clinical trials
New research explains why our waistlines expand in middle age
Advancements in muon detection: Taishan Antineutrino Observatory's innovative top veto tracker
Chips off the old block
Microvascular decompression combined with nerve combing for atypical trigeminal neuralgia
Cutting the complexity from digital carpentry
Lung immune cell type “quietly” controls inflammation in COVID-19
Fiscal impact of expanded Medicare coverage for GLP-1 receptor agonists to treat obesity
State and sociodemographic trends in US cigarette smoking with future projections
Young adults drive historic decline in smoking
NFCR congratulates Dr. Robert C. Bast, Jr. on receiving the AACR-Daniel D. Von Hoff Award for Outstanding Contributions to Education and Training in Cancer Research
Chimpanzee stem cells offer new insights into early embryonic development
This injected protein-like polymer helps tissues heal after a heart attack
FlexTech inaugural issue launches, pioneering interdisciplinary innovation in flexible technology
In Down syndrome mice, 40Hz light and sound improve cognition, neurogenesis, connectivity
Methyl eugenol: potential to inhibit oxidative stress, address related diseases, and its toxicological effects
A vascularized multilayer chip reveals shear stress-induced angiogenesis in diverse fluid conditions
AI helps unravel a cause of Alzheimer's disease and identify a therapeutic candidate
Coalition of Autism Scientists critiques US Department of Health and Human Services Autism Research Initiative
Structure dictates effectiveness, safety in nanomedicine
[Press-News.org] Surviving a small business tax auditNo matter how meticulous the records are kept, perhaps nothing strikes fear into the heart of a small business owner than an audit notice from the Internal Revenue Service.