audits

Your return has been selected for audit. You and your CPA have pulled together the material you need. Now what?

No one likes to think about getting audited, but what happens if you do? Read on to learn how to survive an IRS audit.

I just did a workshop on eBay today covering 25 common mistakes that can lead to an IRS audit. It was a lively workshop with a lot of questions regarding business structures, sole proprietorships and audits, and the big one “I just sell a few things on eBay - do I have to report that income and pay taxes on it?” (The answer is “yes,” BTW).

If you needed another reason to think about converting your sole proprietorship into a business structure, a recent announcement by the GAO (Government Accounting Office) suggesting that the IRS pay particular attention to sole proprietor tax returns should help.