When it comes to the tax law, a lot of people don’t understand what the “statute of limitations” really means. They think it governs the length of time they have to hang on to their tax records. Wrong. The “statute of limitations” refers to the window of time when you and the IRS can make changes to your tax returns. The statute of limitations sets the time periods during … [Read more...]
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What to do if your tax records are destroyed
If you lose your home or business to fire, flood, hurricane, earthquake or some other disaster, the last thing you’ll worry about is your tax records. Unfortunately, the IRS won’t cut you much slack if those records are destroyed. Uncle Sam will still say “Show me the money!” We sure hope you never face terrible losses like those mentioned above, but if you ever do, you’ll … [Read more...]
Old receipts never die. They just fade away.
You take a client out for a business lunch and when you get back to the office, you file the receipt away just like the IRS wants you to. Then, years down the road the IRS calls you down for an audit and asks you to produce your receipts. You go to your file and discover that the thermal paper receipts your favorite restaurants used have faded and are unreadable. The … [Read more...]
How an IRS mistake can cost you big money
It should come as no shock that the IRS isn’t perfect. So what happens when they screw up and their error costs you money? In my new article I’ll tell you how the IRS made just such an error in their publications and instructions — an error that concerns the gross-income limit that applies when you want to claim the home-office deduction and have more than one place of … [Read more...]
Don’t make this fatal tax-deduction error
Tax deductions are great. But you have to make sure they’re legal. In my new article, I’ll tell you about Dr. Elick who wanted to create fat deductions but made a devastating error that cost him dearly. You see, he created an Employee Stock Ownership Plan (ESOP) to maximize his deductions, and also created a management services corporation to provide services to his … [Read more...]