Tax Hints for New Businesses

There are many hints or suggestions I can give a new businessman, but I do not have that much room. I will give you three very important hints to keep you straight with the IRS. First, keep good business and personal records in a safe place for at least seven years. Second, respect Form 1099’s. When you get one, check it for accuracy and always account for it on your return. The IRS uses Income matching technology to match issued 1099’s with received 1099’s; therefore, leaving a 1099 off your return is a pretty sure way to get audited. Three, keep your business and personal life and expenses separate. Mixing business and personal income and expenses is another sure way to lose an audit. Do not try to deduct personal expenses as business expenses.