- Claim those deductions. Some people fear that claiming tax deductions will raise eyebrows at the Internal Revenue Service. This issue is only sensitive when it comes to what deductions a corporation can take as opposed to a sole proprietor and even then, if you have the documentation to prove it, what are you worried about?
- Audits. A random stranger in a suit is not going to visit your house tomorrow, unannounced, to perform an audit at your home or business. If an actual audit is necessary, you will be notified by IRS and asked to provide documentation if an adjustment is necessary, and you will have plenty of notice. If you do have to appear, your attorney or tax professional can instead often go in your place as long as they have authorization to do so.
- Not having funds to pay your bill. There are options to paying your tax bill with IRS if you cannot pay it in full, or cannot pay it all immediately. But not filing a return or replying to letters is a mistake. The IRS will not hesitate to garnish your wages, levy your bank account, or take other actions. Be proactive in this
- Correspondence (mail) from the IRS. Remember, IRS is swamped in the bureaucracy like everyone else is; sometimes the letter is simply informative that you might need to file a certain form, or a notice of adjustment. Ignoring what could be a time-sensitive piece won’t make it go away and usually results in worse consequences. Don’t forget the previous points; you will have plenty of notice and there are payment options available to you.
- Making a mistake. Everyone does. As long as you are up to date on your takes and somehow make a small mistake that results in a deficiency, the IRS will sometimes waive any associated penalty (always check with your accountant!). If you’re intentionally trying to cheat then they’re not going to be so nice.
Don’t go alone, take a qualified accounting professional with you. Contact us today at 407.892.1066.