Do You Really Need To Keep All Those Receipts?

Which Receipts Should You Keep? Some business owners keep every receipt they are given, others don’t keep any. Hopefully, you are somewhere in the middle. A basic rule of thumb is to keep proof of anything that can be deducted on your taxes. However, per IRS Publication 463, if the expense is less than $75 you […]

Dependent Children as Employees

If your dependent children are working in your business, it is possible that the IRS will deny the wage expense; even if the children report the income on their personal taxes. This is an area that is very closely scrutinized by the IRS. Basically, IRS holds that the employer (parent) is making support payments disguised […]

Business Use of Vehicles

Business Use? Make sure the IRS will agree! Don D owned a carpet cleaning business, which he reported on a Schedule C. He owned 9 vehicles, including 4 vans and admitted to using 4 of the vehicles for personal as well as business purposes. Unfortunately, he did not keep mileage logs to document business use of any of […]

Warning On IRS Tax Audits

Your company was audited. In the end, the IRS agreed with the way the contested issue was handled. So now everyone is in the clear on that issue, right? Not quite. Case: M was audited on an issue several times. Each time the auditor conceded that M’s treatment of the contested issue was not incorrect and did […]