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IRS eyes small-business folks

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in Small Business Tax,Small Business Tax Deduction Strategies

You’ve been warned: The IRS has developed a new “Audit Techniques Guide” (ATG) for agents examining business consultants. The ATG pinpoints several critical issues such as misclassification of independent contractor status, online bartering transactions and shifting of income to corporations.

Another sore spot: The IRS remains concerned that some entities are avoiding the flat 35% tax rate that should be imposed on pro­fes­sional service corporations (PSCs). As usual, the IRS advises its agents to carefully review deductions for travel & entertainment (T&E) expenses. You can read the entire ATG for business consultants at http://tinyurl.com/ATGforbusiness.

 

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