WHO WOULD “BUG” IRS FIELD OFFICES?
Several IRS field offices have reported that they are infested with bedbugs.
When a field office reports a bedbug problem, IRS policy now states the
agency is to send an extermination specialist with a dog to hunt down
and destroy the pests.
Are you thinking what I’m thinking? The IRS treats bedbugs the same way
they treat taxpayers.
DON’T FORGET TOMORROW’S TELE-CONFERENCE
Did you get a tax refund of $3500 or more when you filed your 2010 tax return? If so, would you have preferred to have gotten 1/12th of that amount every month throughout the year, instead of waiting until April to get it back?
If this applies to you, be sure to join me on the phone tomorrow, Thurs., May 26th at 6pm Pacific, 9pm Eastern. In a brief,
right-to-the-point 20-30 min teleconference I’ll take you step-by-step through the
process collecting your refund in advance, instead of having to wait until fi ling your tax return next year.
Date: Thursday, May 26, 2011
Time: 6pm PDT, 7pm MDT, 8pm CDT, 9pm EDT
Call-in #: 619-684-9024
PIN Code: 868 3900 #
Cost: No charge
SURPRISE! AUDITS ARE ON THE UPSWING
Last year 1.11% of tax returns were audited, up from 1.06 the prior year.
That’s the highest rate in 15 years.
Five hundredths of a percent doesn’t sound like much, but when you multiply
that number by 140-million tax returns filed, the resulting number is 700,000
new, additional audits last year.
That trend is likely to extend into this year as well.
IMPORTANT TO KNOW:
More and more audits are being conducted by mail. The IRS sends
you a letter stating, “we are reviewing your tax return for 20(xx), and we
have a few questions about your deductions for (fill-in-the-category).”
They’re called “Correspondence Audits.” A revenue agent can usually process
four mail order audits in the same amount of time it takes for just one face-to-face audit.
That approach would let the IRS do four times more audits, without any increase in personnel.
IS THERE ANY GOOD NEWS HERE?
Once the letter identifies the category or categories they are looking into, it then tells you to mail documentation to them, proving you qualify for each deduction.
If you have good records, a mail order audit is much easier to go through than
the torture of an in-person inquisition.
BUT if you do NOT have good records, this new trend could be a new nightmare.
HERE’S HOW YOU CAN PROTECT YOURSELF
The best self-defense, of course, is easier to say than to do: keep good records.
You already know that, so why don’t you do it? Life is full of things we know we
should do, but don’t do.
Why? We tend to put off taking action until either the cost or threat gets too
great, or the solution gets much easier.
Well, the threat of YOU being audited has definitely gotten greater, but happily
the solution just got much easier also!
Record keeping no longer has to be time-consuming, boring or tedious. In fact, it doesn’t even need to be called a “chore.”
I use Certified Tax Advantage, myself. CTA lets me record all IRS-required
data in about the same amount of time I spend brushing my teeth – about 3 min twice a day.
The software actually prompts me to keep IRS-compliant records.
To document an Entertainment expense, the IRS wants answers to five questions. When I use CTA to record tax deductible expenses for Entertainment, the software displays those five questions right there
on my computer screen -- all I have to do is answer each question, and click Save.
Instantly I have the exact records I may need for proving (two or three years from now) that I fully-qualified for that deduction.
It literally gives me audit-proof records.
DO YOU WANT TO TEST-DRIVE IT?
I’ve made 2 arrangements for you.
First - You can try the full-blown program (not just some slimmed down version) of the CTA software FOR FREE. You can enroll and begin your test-drive right now at www.mycertifiedtax.com/mueller
Second- If you like it as much as I do, you’ll want to keep using it, right? If you initiate your enrollment via that link above, when the trial period ends and you decide, you will automatically get a 40%-discount off your membership dues – and that reduced membership rate is guaranteed FOR LIFE!
ONE FINAL THOUGHT ABOUT KEEPING AUDIT-PROOF RECORDS
Once you see for yourself how easy it is to do the record keeping, you might want to hire your minor child or grandchild do input the data for you. The money you pay them can be tax-deductible to you (as ‘wages’), and the money they earn from you can be tax-free income to the child! (Refer to Chapter 6 of “Home Business Tax Savings Made Easy!”)
That’s a wrap – another issue of “Tax Tips You Can Bank On.” ™
Creating Tax-Smart Home-Business Owners for more than a decade,
RonRonald R. Mueller, MBA, Ph.D., Author & Speaker www.HomeBusinessTaxSavings.com