Suggestions for Recovering Lost Financial Records
- November 7th, 2017
- David Greene
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Here are some suggestions for recovering your financial records if they are lost or destroyed in a hurricane or other natural disaster: (1) get a copy of your tax transcript from the IRS; (2) Request copies of records (bank statements,…
How can you prove expenses in an audit if you did not keep good records?
- September 19th, 2017
- David Greene
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As you know, if you are audited the IRS will not accept your word for income or expenses. If they think you underreported income, they will go through all of your financial accounts and add deposits to determine income. It…
How long should you keep your tax return preparation documents?
- July 11th, 2017
- David Greene
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The answer is not as simple as you might think. If you have the room, it would be wise to keep those records for at least ten years. In these days it is easy to scan paper documents and store…
What factors trigger a business audit?
- June 6th, 2017
- David Greene
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There are two basic ways the IRS chooses a Form 941 Employment tax return to audit: 1. A computer program detects a return that has incorrect amounts or 2. Information from compliance projects (news media, public records, etc.) suggests the…
What Document Support Is Needed for Charitable Contributions
- May 23rd, 2017
- David Greene
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Here are the rules for deducting charitable contributions and the supporting documents needed. Any contribution of $250.00 or more must be substantiated by a contemporaneous written receipt by the donee organization. This receipt must state whether or not the donee…
What steps can you take to avoid an audit?
- April 4th, 2017
- David Greene
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There is nothing you can do to guarantee that you will never be audited. However, by following three simple rules, you can minimize your chances of being audited and, if you are audited, minimize your chances of having to pay…
What are the most common mistakes made on a tax return?
- March 7th, 2017
- David Greene
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Here are the most common mistakes the IRS sees from self-prepared returns: (1) Math errors – be sure to check your math twice; (2) Misspelled name or changed name not updated (be sure the name on the return matches the…
Examples of stupid deductions that the IRS disallows
- March 1st, 2017
- David Greene
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Unfortunately the IRS is not lenient when you try to deduct expenses for which there is no valid reason. Here are a few examples of deductions that have been tried and “shot down” by the IRS. (1) A real estate…
How to tell if your worker is an employee or independent contractor
- February 22nd, 2017
- David Greene
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Many small businesses are audited by the IRS each year to determine if their workers are truly independent contractors or really employees. If they are found to be statutory employees, large fines and delinquent payroll taxes can result. If your…
Here are some tax saving tips for the Home Office.
- October 4th, 2016
- David Greene
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There are definitely some tax advantages to the home office deduction if it is set up correctly. Here are some pointers to help you get the most benefit: (1) the space must be exclusively and regularly used as the principal…