Are you paranoid that your home-office deduction will invite an IRS audit? Well, you are not alone. Countless taxpayers fail to take advantage of a big deduction that they’re entitled to because they’re afraid of Uncle Sam. The fact of the matter is… We don’t consider the home-office deduction to be an audit flag. To get the whole story about a proven step you can … [Read more...]
Audits
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The IRS Audit Is Wrong on First and Last Stop Rule
Despite what you may think, IRS examiners are only human. This means they can (and often do!) make mistakes. In this issue of the Tax Reduction Letter we’ll take a look at a case where the IRS examiner mistakenly applied the “first and last stop” business-commuting rule. Yes. The IRS blew it, but the taxpayer’s CPA saved the day by tapping into the Bradford Tax … [Read more...]
How to Avoid Payroll Embezzlement
Paying payroll taxes to Uncle Sam is no fun. But you know what’s even worse? Having an embezzler steal that payroll tax money, forcing you to come up with that amount again and paying it to the IRS. And after becoming a victim of theft, you know what’s really the cherry on top? Paying the government a Trust Fund Recovery Assessment (known as the 100-percent penalty … [Read more...]
Can the IRS Require Odometer Readings with the Mileage Rate?
When it comes to calculating a deduction for the business miles you drive, Uncle Sam gives you two choices. You can use… 1. The IRS standard mileage method or 2. The actual vehicle expense method In this issue of the Tax Reduction Letter we’ll explain everything you need to know if you’re using the IRS mileage method. Don’t miss this important information. We … [Read more...]
Update on New Court-Approved Way to Defeat IRS Penalties
You and I have something in common. We both hate getting hit with tax penalties. That’s why we should be grateful that the most recent court cases dealing with Section 6751(b) of the tax code have given us a powerful weapon against IRS penalties. Want to learn more about how to put these new rulings to work for you? Read my new article title Tax Tips: Update on New … [Read more...]