Audits coming – are you ready?

I’m sounding the alarm for the first time in my career. Why? IRS now has an astronomical budget to go after tax cheats. I’m sure there are plenty of tax cheats out there to find, but I am worried for the many businesses out there who don’t cheat on their taxes. Audits are just no fun, even if you have all your paperwork in pristine condition. Audits are expensive and time consuming.

One of the areas IRS will be looking at are businesses with losses. There are many perfectly legitimate reasons your business could have losses. If you are experiencing losses in your legitimate business, the last thing you need is a challenge by IRS that your business should be reclassified as a hobby. If you are wondering what you need to do to prove that what you have is a business and not a hobby, there are many resources available on the internet for you to research. One of the best free sources is www.irs.gov  If you would rather just spend one hour of your time and $29.95, take a shortcut and learn from a CPA with years of experience in this area, you might want to consider signing up for my new course. You’ll find more about it here:

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If you receive an audit notice, you will have very little time to prepare.  Why not go ahead and be ready now?  You’ll be very glad you did.