The IRS publishes statistics regarding the percentage of returns that have been examined by type of return. Not surprisingly, some taxpayers have a greater chance of being audited than others according to the latest statistics. Let’s take a look at some stats: The majority of audits, 74.8%, were conducted via correspondence, and the remaining 25.2% […]
audit
8 Red Flags That Could Trigger an IRS Small Business Audit
My colleague, Brad Paladini, has granted me permission to post this article that was originally posted on his blog: Last year, the Internal Revenue Service (IRS) audited just over one million returns. That’s a lot less than the 1.74 million returns they audited in 2010, but it’s still no fun for the millions of taxpayers that had […]
The LLC Trap
Operating a business as a limited liability company, or “LLC” is very popular among small business owners. LLC’s have been around for several decades and can be formed in every state. There can be several benefits, but several major drawbacks. The Benefits of an LLC: Less Administrative Burden: If you operate as a single-member LLC, […]