Your Tax Place, Inc. - Tax Savings Strategies

How to Organize Receipts for Small Business  As a business owner, you have probably heard this statement over and over again:  KEEP YOUR RECEIPTS FOR TAXES!    Although this STATEMENT is TRUE, you should also KEEP the IRS in mind so that those RECEIPTS will count if an audit is required. Here are a few suggestions on how to KEEP THE IRS in mind when COLLECTING , STORING , AND PRESENTING those BUSINESS RECEIPTS. WHICH RECEIPTS ARE DEDUCTIBLE FOR MY BUSINESS? Owning, operating, and maintaining a business COSTS MONEY. But, when you buy things for the BUSINESS, they must be legally deductible. EXPENSES must be an ORDINARY AND NECESSARY EXPENSE  for your specific industry to be able to legally deduct it on your taxes. The WAY that you  STORE , ORGANIZE and PRESENT the receipts for business purchases as the PROOF will also be a consideration by the IRS to allow the deduction or not.  STORING and ORGANIZING...

  Do you pay your workers as EMPLOYEES or CONTRACTORS? With the NEW YEAR now here, it's TIME TO GET THIS RIGHT! One of the most recent HOT TOPICS with both the IRS and the DOL is to investigate businesses for the MISCLASSIFICATION of their WORKERS. For the past few years, businesses have misclassified their workers as contractors instead of employees in order to save 7.65% in matching payroll taxes. Because these businesses have been able to get by without being monitored and corrected, these business owners have become comfortable with this process and don't think they are doing anything wrong. In fact, because a lot of businesses have been operating this way, new business owners starting up the same business believe that it is ok to operate like this as well. The IRS has been aware of this problem and now are about to use their newly hired employees to become very aggressive about correcting this KNOWN PROBLEM to assess back withholding taxes and penalties to those ...

 Sole Proprietor, LLC or Corporation Which is the best for your business? As a business owner, you should be aware of what each type of business entity offers in terms of taxes, liability protection, and control over the business. The easiest and most common business type is the Sole Proprietorship. As a sole proprietor, you automatically get the new (and misunderstood) responsibility of "self employment" taxes. Sole Proprietorship You have NO LIABLITY protection for your personal assets in case of a lawsuit You have COMPLETE CONTROL over how to run and manage your business There are not usually any start up fees required Most new businesses start out this way until they get a better education about the other options. LLC business type The LLC is also very popular choice among new business owners, but it is not always chosen for the right reason.  Some people claim that there are more tax advantages than a sole proprietorship. However, the truth is, an LLC does not differ...

  $45.6 billion dollars was approved by the Senate to help the IRS to IMPROVE ENFORCEMENT which is causing a lot of us to become concerned.   WHAT COULD HAPPEN?    The chances of getting audited has dramatically increased.  4 Ways to Prepare in Case You are Audited  1. Be sure that all expenses claimed on your tax return are accurately supported by receipts. 2. Review your Tax Return before you sign it. Take your time and review all income/expenses claimed BEFORE SIGNING  ONLY YOU, not your tax preparer, is responsible for the information reported on your tax return AFTER YOU SIGN IT Compare your tax return with the previous year and question any differences to be sure you can support any changes Ask alot of questions to learn the laws used to prepare your tax return Have your filed tax return amended if you catch the errors BEFORE the IRS catches them 3. Hire a Reputable Tax Preparer that has a history of Assisting with Audits Confirm th...

  A lot of people that I talk to ask me, " Who will give my business credit ?". Having business credit will help you to purchase the tools, equipment, and supplies that you may need to help you to grow your business.  But, in order to get business credit, your business needs to  Be Separate  from you.  Also, the business needs to have a proven track record of purchasing items on credit and repaying them ON TIME and/or IN FULL each month.    In other words,  Have its own Credit Score. As you know, a Credit Score is given to people/businesses and is attached to the NAME and TAX ID of the person/business for all to review and decide whether or not more CREDIT can be issued. First Step If you want to establish business credit and have established your business as a sole proprietor, the FIRST STEP  you need to take is to Separate   You from Your Business.   You can do this by forming a separate legal entity such as a...