Top 3 Audit Flags for Small Businesses!
With tax season in full swing, Tax Goddess wants to help you avoid the always-dreaded audit!
If you own a small business, pay attention!
1) Don’t claim 100% of your vehicle for your business!
So you use your vehicle for your business, and you want to be able to claim that on your tax return… Ok, but come on… we all know that business vehicle might take an occasional side trip or 2 to the mall, or to somewhere off your business roadmap, right? The IRS pays extra attention to those who claim 100% of their vehicle on their returns; so don’t give them more reason to look your way!
2) Keep good records!
It goes without saying that any business should be keeping the best records possible, but this one is especially for the real estate professionals… For the past 5 years, the IRS has been specifically targeting real estate professionals. Make sure your records are well-kept, and as clean as possible.
3) Does your business have a bank account in a foreign country?
If you have a bank account in a foreign country that, at any point during the year, has had more than $10,000 in it, you must file a special form. The penalty for not filing this form is $10,000 per bank account! Aaaahhh! If you don’t want to get stuck paying this massive penalty fee, make sure you’re reporting any and all foreign bank accounts.
We don’t want to see your business get audited, and we know you don’t either! Remember, the best way to avoid an audit is through Strategic Tax Planning, and Tax Goddess Business Services® specializes in this.
If you have any questions about ways to avoid audits for your business, please don’t hesitate to contact us.