The IRS is aware of the fact that hiring independent contractors vs full-time employees can net real savings in expenses, such as unemployment insurance and state payroll taxes. If someone reports that you have misclassified your workers, that can trigger an IRS audit. Claiming losses for seve...
Essential small business tax documentsprovide justification and proof of your income and deductions to the IRS. A quality bookkeeping system also saves you time and headaches when taxes are due. Depending on your business, this system might includeaccounting software, employees, or...
By Karen E. Klein
A business audit, as the name suggests, is where this process happens at the business level. If the IRS sees tax return errors, they may decide to do a tax audit of that business. What happens during a small business’s IRS audit? Tax preparation is hard enough without the stress of ...
Avoid Self-Employment Taxes Tax Home Defined Self Employed 401k Plan Once you launch your shiny new small business, you might also consider the several small business retirement plans which include solo 401k plans, profit sharing plans, cash balance and defined benefits pensions. For example, with...
Small business taxes include income, payroll, self-employment, and excise taxes. It's important to know which taxes apply to your business to avoid IRS penalties. Filing late or missing payments can lead to fines and interest, so mark your calendar for important dates like April 15. ...
An IRS audit can be an intimidating and complex process. If you face an IRS audit, we can bring to bear years of experience in dealing with tax matters and IRS audit procedures to ensure that you are properly represented. Retirement Planning Retirement planning is critical in these uncertain ...
"I meet many small-business owners, and they like to say 'I deduct everything,'" Eisenkraft said. "The problem with that line of thinking is that they will never survive an IRS audit. For those who are smarter, they will learn that lesson [early]."...
Reducing Taxes Article Section 199A Business Deduction Section 199A deduction also known as theQualified Business Income deductionarises from theTax Cuts & Jobs Act of 2017. This is a significant tax break for small business owners, however, there are rules and limits. We have written additional...
audit at the location where the original books, records, and source documents are maintained, generally the taxpayer’s home or place of business. As you can probably guess, they are the least common type of audit. 21% of 2021 audits were field audits, per the 2021 IRS Service Data Book...