While small businesses are known for their ingenuity, when it comes to income tax reporting creative thinking isn't advised. That’s because tax rules are very punishing when violated, and it’s the IRS’ job to make the corrections via audits. For the uninitiated, an audit is essentially a second review by the IRS of one’s tax filings (the first is automatic by a computer).1 For the initiated, it could potentially be a very bad situation if problems are found. That’s because the IRS has the power to not only recover missing collections but to also punitively assess severe interest and penalties.
Don't want to go it alone?
Having a tax professional by your side can help you avoid an audit. Working alongside your wealth advisor, your tax professional can review your situation and provide you with the right guidance. Schedule a review and start planning now for next year's tax season.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.