I sure hope your tax preparer is honest. You see, if he or she is claiming false or fraudulent deductions on your behalf, you could be in big trouble even if you’re completely innocent of any wrongdoing! That’s right. If the IRS discovers that your tax preparer is dishonest, it’s likely you’ll get caught up in the government’s web too… and suffer serious consequences. Want … [Read more...]
Audits
Sorted by Date
Give the IRS an inadequate mileage log and it will crush you
Don’t let what happened to Jim and Martha Flake happen to you. Because of bad recordkeeping, they attracted the attention of the IRS. The result? They had to visit with an IRS agent every two weeks for about a year! How can you stay on Uncle Sam’s good side and avoid the two mistakes that got the Flakes in hot water? Easy. Read my new article titled Tax Tips: IRS Asserts … [Read more...]
What to do if you lose your tax records
There’s a dangerous myth floating around the Internet. It goes something like this: “If you lose your business records, don’t worry about it. All you have to do is sign an affidavit stating that ‘these are my deductions and I affirm they are correct’ and you’re home free.” If this sounds silly to you, think about how it sounds to the IRS or to a judge! Nope. If you lose … [Read more...]
How to deduct business meals with your spouse
Not so fast! Don’t automatically assume that the IRS won’t let you deduct the cost of a business meal with your spouse. If you know how to handle things the right way, you can enjoy a leisurely dinner with your wife or husband and let Uncle Sam pick up the tab! How can you overcome the IRS’s “no deduction for personal, family, or living expenses rule”? You’ll find out when … [Read more...]
Want to survive an IRS audit? Know the law!
Usually, in a tax audit, you’re discussing facts, not the law. If the IRS auditor questions your deductions, you prove the facts with receipts, canceled checks, log books, etc. But once you get into matters of law, not matters of fact, you need a lot more information. That’s where my new article comes in. It will show you how to use the law, court rulings, and IRS documents … [Read more...]