At this time of year, many people in Missouri and across the country are thinking of their taxes. While many people have already filed, they may still be waiting to receive their return. Others may be anxious about the possibility of further questions from the IRS in the form of audits.
After the holidays have passed and the new year commences, many people in Missouri, especially small business owners, turn their attention to the next big task ahead of them -- filing taxes. Though the chances of a small business owner being audited are relatively rare, some statistics indicate that small business owners may have a higher chance of being the subject of an audit in comparison to the general public. There are certain steps that a person can take to help avoid facing such scrutiny.
For many in Missouri and across the country, filing taxes is a time-consuming task that is filled with complications. Often, there is a concern that a simple mistake will lead to an audit and, potentially, criminal charges. For many, the risk of audits is daunting, and many people who must undergo them are unfamiliar with the process.
There’s only one thing that everyone loves more than paying taxes—being audited.
There are a range of things that could lead the Internal Revenue Service to decide to audit a given tax return. Among these are concerns related to credits claimed in the return. One type of tax credit that is involved in quite a few audits here in the U.S. is the earned income tax credit.
With the tax deadline coming up, many people have already finished their taxes or are just about to do so. A person can feel an awful lot of relief after finishing filing their taxes; it can feel good to be done with the process for yet another year. In the midst of such relief though, it can be important to remember that getting one’s taxes done doesn’t necessarily mean one is free from thinking of tax-related matters for awhile. Important tax-connected decisions can come up for a person after filing.
Among the deductions individuals can claim on their taxes are deductions for automobile operating costs related to certain activities. Among the car travel a driver might be able to deduct such costs in relation to are: travel related to service to charities, travel for moving purposes, travel for medical purposes and business travel.
When a person is in their retirement years, certain things can have big impacts. One of these is what actions they take when it comes to their retirement accounts. Among the implications such conduct can end up having are tax implications.
One thing that can have very big impacts on a small business when it is audited by the Internal Revenue Service is how prepared it is going into the audit.