According to a recent report by the IRS, auditors are going to be stepping up their audits of sole proprietors, looking for unreported income and unfiled tax returns. In addition to searching for unreported income, the IRS will be looking for sole proprietors who did not file required employment tax returns or information returns. How to prepare your business in case the IRS comes knocking? It … [Read more...]
What's Your Audit Risk?
The IRS just published their IRS Enforcement and Service Results for their fiscal year 2009. Based upon this new data, the higher your income, the more likely that you'll receive a letter from the IRS asking for additional information or tax payments. A correspondence audit of this kind is often triggered when you forget to report all of your 1099 payments, including "freelance" payments that … [Read more...]