Don’t Forget the Basics
When preparing your taxes, nothing is more important than keeping good records. Without accurate records of profit and loss, business expenses and eligible tax deductions, you can’t estimate your tax liability, your accountant can’t give precise and professional advice and in the event of an audit, you can’t prove your expenses.
Don’t Mix Business With Pleasure; At Least Not On Your Tax Return
One aspect of keeping good records for your business is to be sure to keep business expenses separate from your personal expenses.
Ask for Help
Between the tax code, tax regulations and IRS rulings, the federal tax rules span 73,954 pages. America’s tax system is way too complicated for most people to understand, especially if they are small business owners who have to deal with all of the extra complexities and regulatory obligations. So get an accountant to help do your taxes.
Take Advantage of Recent Legislation
Every year there are a variety of changes to federal legislation that might affect your business and your tax return.
Avoid Common Audit Traps
Going through an IRS audit is never fun for anyone, so it’s best to avoid putting yourself in that position in the first place. With careful planning and attention to detail, you can avoid some of the most common IRS audit traps.
So, in sum: keep your files in order, stay up-to-date, and consult a professional tax adviser to avoid playing fast and loose with the federal government’s rules and regulations.
For more information contact Neikirk, Mahoney and Smith at 502-896-2999
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