Facing an audit by the IRS can be a daunting situation for any individual or business. Even if all your taxes are in order, audits can take a lot of time and energy. Fortunately for the taxpayer, the IRS Restructuring and Reform Act of 1998 resulted in kinder and gentler practices from the IRS. Unfortunately, due to extremely low audit rates in years following, resulting in political embarrassment, audit rates have begun to climb back up. Everyone should make sure to file their tax return properly each year, but there are some people who should be warier of an audit than others. These people include high income earners, people filing a business tax form (especially large corporations), and people claiming the earned income tax credit (EITC). To avoid being audited, it may benefit you to treat the situation like a battle with the IRS, where the first defense is a strong … Read More
Under the recently enacted Tax Cuts and Jobs Act (TCJA), there has been a crackdown on which meal and entertainment expenses are tax deductible. Under the previous law, 50% of all business-related meal and entertainment expenses were tax deductible at the end of the year, but the TCJA has cut this discount down to solely meal related expenses. This change initially caused confusion, but a recent notice sent out by the IRS was able to make light of the new rules. In order to make to proper deductions and fully utilize the law for your business, it is important to understand the rules of what can be deducted and how to record it.
The most important part of getting the full deduction for your business is making sure to obtain receipts that denote separate charges for food bought in connection with … Read More
Filing a tax return that is both accurate and yields the optimal savings can be a stressful and burdensome process. Whether working on your own or with a tax professional, the changes in tax laws and the plethora of documents can make the process confusing and leave you wondering whether you are putting the correct information in the correct places. The most useful practice you can utilize to help yourself through this process is to locate and organize your most important tax, wage, and spending documents. If you can follow the steps in this article, it will not only streamline the filing process by providing easy access to all necessary information, it will allow you to provide audit-proof information that leads to greater savings.
Step 1. The first thing you should do when gathering documents is to accumulate your most recent … Read More