At Mendes Weed, LLP, we advocate for our clients to the fullest extent of the law. Part of our advocacy is helping our clients keep informed of news and information that may affect their livelihood, their family, and their business.
Since this is the time of year many people are preparing to file their 2017 tax return, we wanted to bring to attention that IRS tax audits for self-employed individuals are on the rise. for the Possibility of an IRS Tax Audit with These Tax Tips from Mendes Weed, LLP
If you are self-employed, you need to be especially meticulous about your business. Failing to follow the tax laws could cause substantial harm to your business finances if you are audited by the IRS, and no one wants to go through that trouble, stress, and hassle.
Please consider these tips:
- Claim all your income
- Issue 1099’s on time to subcontractors. The IRS deadline is 1/31.
- Understand when to expense or capitalize a purchase.
- Delineate purchases appropriately-keep business purchases separate from personal.
- Track your mileage appropriately.
- Separate travel and personal expenses.
- Keep meticulous records.
- So not commingle business and personal funds.
- Pay estimated quarterly taxes.
- Contact a tax lawyer.
In addition, with the recent changes to the tax laws, it is important to meet with a tax lawyer if you have any questions about possible changes to your business.