Seven Things You Can Do Right Now To Avoid The Dreaded IRS Audit!
Entrepreneur, are you at all familiar with the famous quote by Confucius which says” Before you embark on a journey of revenge,dig two graves?” Just a fancy way of saying, if you’re foolish enough to truly believe, little old severely under capitalized you is going to successfully challenge or defy the mighty IRS alone!
Then you’ll most certainly (at some point) need two graves! One for you and a really large one for your foolish pride! Oh it can be done alright, but odds are, just not by you or I!
Anyway, here are seven incredibly simple things you can and should probably do (sooner rather than later), in order to avoid the dreaded IRS audit!
Because, (if you have any doubts whatsoever), you can simply ask anybody you know that’s recently had an IRS financial lobotomy! They ain’t fun!
Seven Things You Can And Should Consistently Do In Order To Avoid The Dreaded IRS Audit!
(Don’t Give Them Extra Incentives To Start Poking Around!)
Because the real object of you and I going into business, was to make money right? Not purposely do this to trigger audits!
1.) First and foremost, entrepreneur you may wanna go a little easy on having too many family members, especially immediate family members on the payroll Certainly, this practice is not illegal. But you don’t want Uncle Sam’s representatives, trying to decide out if all you’re really trying to do is get money out or your business, or worst yet!
Trying to give family members gifts, without paying all of your legal tax obligations! (Who could seriously doubt your true intentions?)
2.) Next, you don’t want to make the mistake that a lot of business owners (especially small business owners make), which is to unintentionally report their net income on a schedule C form, instead of reporting their total gross income from sales!
(Caution, you may have just unintentionally triggered a red flag warning!)
Especially if yo don’t have the real gross income figures to justify them! (You’ll make more money long term, by playing by all the rules, than by trying to skirt them short term!)
4.) And while you’re pondering that, keep in mine you don’t want to claim too many general deductions under the “miscellaneous” or “other” categories! Instead of the more readily accepted (and most relevant) categories under the Schedule C section.
5.) And of of course intentionally or unintentionally using the wrong accounting methods, may raise a few eyebrows as well! Basically, there are two main (standard accepted accounting) methods in use today. (Check with your nearest qualified legal professional for all of the specific expert details!)
Some use the “cash accounting” method while others prefer the “accrual accounting” method.
6.) You self employed/ sole proprietor types! Be ye aware of excessive deductions for (what else?), meals, travel and various air fares and hotel/motel costs etc.
Because for whatever the reasons, right out of the gate, the IRS already has a fast trigger where you and I are concerned!
7.) And finally….. If at all possible! Entrepreneur, try to avoid purposely missing any and all deadlines set by the IRS!
Nothing triggers a potential audit faster, than being inconsistent with meeting their pre established deadlines!
Well there you have it entrepreneur, short & sweet! No frills! Do everything you can, to increase your profits! But don’t purposely do anything, that might trigger the dreaded IRS audit! Any questions?
You Consistently Do The Right Things And Being Audited By The IRS Is Not Nearly As Scary As It Initially Seems!
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