The frequency of audits on taxpayers has increased by 500% in 2009 as compared to 2008. This year the IRS has successfully challenged (audited) several taxpayers with employee business expenses.

What else is being challenged:

·         Claims for the Earned Income Tax Credit

·         Large charitable deductions

·         The tax credits for home buyers

·         Deductions claimed by self-employed taxpayers

·         Schedule C: Advertising, Vehicle, Meal and Entertainment expenses

What this means: Small businesses are in the IRS spotlight and improper business expense reporting could lead to audits, fines and penalties.

Christine Reiner, CPA, ensures legitimate, ethical and accurate tax reporting for your small business. Contact our office today to set up your appointment and protect your small business!

Important information for business owners and QuickBooks users!

IRS agents are being instructed to obtain a copy of the taxpayer’s database for examinations for any taxpayer who uses QuickBooks.  

Can you refuse to provide your QuickBooks files? – NO!

Inaccurate, poorly-kept QuickBooks files could cost you thousands of dollars in fines and taxes!

Please contact Christine Reiner, CPA, today for help with your QuickBooks files.

S-corporations like consulting firms, accounting firms, investment type firms ect. may have to pay all social security and Medicare taxes on their profits, whether they receive the profits or not! That means there would be less distributions allowed.

House Resolution 4213 “The American Jobs and Closing Tax Loopholes Act of 2010″ passed May 28, 2010.

This Act was passed to extend jobless benefits and boost infrastructure programs in an effort to stimulate the economy. Lawmakers are seeking to raise tax revenues to pay for these jobs initiatives by taxing the profits of S-Corps.

This bill is estimated to raise $11.249 billion over 10 years, and would help offset the cost of the various tax break extensions and unemployment benefit extensions in the bill.

This Act includes provisions to:

• Promote American job creation
• Provide relief for working families
• Prevent the outsourcing of American jobs
• Close tax loopholes
• Maintain access to affordable health care
• Ensure corporate accountability

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