IRS AUDIT TIPS
Tax Tips for Small Business Owners
KEEPING OUT OF THE IRS CROSS HAIRS
With the current financial climate and the federal debt ballooning to astronomical proportions, the IRS is becoming much more aggressive. They were just given the go ahead to hire an additional 18,000 new agents because the federal government is in desperate need of more of your tax money. For this reason, the small business owner needs to become much more cautious in the areas of tax planning and tax preparation.
Your Small Business Outlook In Near Future
Based upon the future business economic climate, the real trick will be not how much you can make but how much of what you make you are allowed to keep.
Unfortunately, your accountant will take a much more important role in the future success of your company as you struggle to keep from giving everything you make to the government.
Just a word about selecting your accountant. Your accountant has the IRS looking over their shoulder at all times and has various licenses at stake. Yes you want your accountant to protect your interests (keep you out of trouble with the IRS), but you also want him to be aggressive in going after every legal tax-saving tactic possible. Bear in mind that your accountant will always have this conflict, so it is vital that you take the initiative to learn tax strategies for yourself.
If you choose to do your own taxes, don’t be intimidated by the task. With the aid of a good tax preparation software tool such as TurboTax Business, it’s not that hard.
Note: Diversified Business Online LLC does not advocate in any way — any type or form of “Tax Evasion”. Any and all tax advice given on this website is only in the form of legal “Tax Avoidance” or “Tax Mitigation”.
“Tax Avoidance” vs. “Tax Evasion”
Tax avoidance is the legal utilization of the tax regime to one’s own advantage, to reduce the amount of tax that is payable by means that are within the law. By contrast, tax evasion is the general term for efforts to not pay taxes by illegal means. The term tax mitigation is a synonym for tax avoidance. Its original use was by tax advisors as an alternative to the pejorative term tax avoidance. Latterly the term has also been used in the tax regulations of some jurisdictions to distinguish tax avoidance foreseen by the legislators from tax avoidance which exploits loopholes in the law.