Your Taxes; areas the Feds are focusing on this year

As a small business owner, here are five areas you’ll want to pay attention to on your return this year:

  1. Increased expenses: Be sure not to add or inflate any expenses you don’t have receipts for. It’s an instant red flag, especially in cases where the overall amount is significantly higher than it has been in years past.
  2. Overestimating donations: If the donation amounts claimed are extremely high it could cause the IRS to question everything else on your return.
  3. Miscalculations: Be sure to double-check your math. When something doesn’t add up, it forces the IRS to dig deeper and find out where (and why) the error occurred.
  4. Home office deductions: More and more people are telecommuting these days. While that makes you eligible for standard deductions for costs like electricity, online access, supplies, etc., it’s also an area the IRS watches very closely. Be careful not to overshoot on simple costs like stationery, phone, etc., unless you’re sure you can back them up.
  5. Failing to sign the return: If you’re filing on your own (or through a third party), be absolutely sure to sign your return before filing it. It’s such a minor detail, but again … once the IRS has to follow up on an incomplete return, it only increases the chances you could be one of the unlucky taxpayers who gets audited.

By the way, traditionally the IRS only audits 1% of U.S. taxpayers.

Source: BusinessBrief.com

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About Arthur De Gennaro

My friends call me Art. Welcome to my blog. In this space you’ll find information and comments on the ophthalmology world, the optical industry, the hearing industry and medical practice management. My intent is to provide information you can use to improve your business and your own performance. Please visit often and feel free to join the discussions by leaving comments.

You can learn more about me and my consulting company, Arthur De Gennaro & Associates, LLC by visiting my web site www.adegennaro.com

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February 2010

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