Just because tax season is over doesn’t mean you can sit back and forget about your taxes. In fact, now is the time that a small business is specifically in danger of being audited by the IRS. Therefore, there is no time like the present to make sure you understand your tax planning strategy. Avoid an audit with these quick tips.
Check your numbers, then double check. Be sure to check your math. Mistakes are easy to make, so double-check any information you put on your return.
Keep excellent records. Minimize your risk of an audit, by keeping all your business income and expenses in one bank account and retain your business expense receipts.
Keep business expenses separate from personal expenses. Have a credit card that is used strictly for business purposes, separate from your personal activity.
Always report your full income. Many well-meaning business owners will under report their revenues, due to the fact that they report the net revenues vs. gross revenues.
Meet the tax deadlines. Being late on your deadlines can raise red flags with the IRS because you appear disorganized.
Honesty is the best policy. It may seem like common sense; however, being 100% truthful on your tax return is required to reduce the chances of an audit.
William Wolske, CPA wants to be sure you are making good money decisions. Schedule your free consultation today to receive assistance when it comes to handling your finances and money saving goals. Contact our offices at 843.706.9644 or visit https://blufftoncpa.net/contact-us/. We’ll go through your financial situation together, so you can have a financially sound tax planning strategy.