10 tips to help you reduce small business audit risk — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
  • LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

10 tips to help you reduce small business audit risk

Get PDF file

by on
in Compensation and Benefits,Human Resources,Small Business Tax,Small Business Tax Deduction Strategies

Company.com, an information and lead generation portal for small and midsize businesses, has provided a list of 10 tips for helping businesses avoid IRS tax audits.

Strategy: Take these suggestions to heart. If you follow them diligently, you can dramatically reduce exposure to an audit.

1. Make your business a business, not a hobby.

If you are in your third year of business and reporting a third year of losses, that’s going to raise a red flag with the IRS.

If you can show the IRS the evidence, they’ll understand that you’re a loss-making small business—for a while. If you’re in year four and still making a loss, expect to hear from the IRS about when you plan to start earning a profit.

2. Report your income accurately. If you are paid $3,250 for a service you provide, and you round that down to $3,000 when you report the income on your return, that’s a red flag, too. It tells the IRS that you’re not keeping accurate record...(register to read more)

To read the rest of this article you must first register with your email address.

Email Address:

Leave a Comment

Previous post:

Next post: