Tax Tip #36: Update on IRS audits

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!

Tags: , , ,

Leave a Reply