Business Expenses: How to Resolve IRS Small Business Issues and Prevent False IRS Deductions
False IRS Deductions should be resisted at ALL TIMES if you want to avoid IRS Small Business Problems. Claim the proper Business Expenses and nothing more when you file your IRS taxes. Many businesses, large and small alike, have been severely burned or closed for good because of claiming False IRS Deductions and wrongful Business Expenses.
IRS Small Business Woes: Small Businesses beware. The IRS has you under a microscope. Even your most miniscule IRS related decisions are magnified. A lot of business owners decide to list personal expenses as Business Expenses and claim other False IRS Deductions. But be warned, when you claim False IRS Deductions and list personal expenses as Business Expenses, you won't avoid IRS Small Business issues for long.
IRS Small Business Red Flags: IRS auditors scan tax returns closely. They look for red flags that indicate business expenses are really False IRS Deductions.
- Huge Business Expenses: If the sum of money you are claiming as one of your Business Expenses seems ludicrous, the IRS is going to audit your tax return and search for False IRS Deductions. If you have what the IRS may consider an extravagant Business Expense, you need enough documentation to back it up.
- Personal Expenditure as Business Expenses: Listing personal expenses Business Expenses is tempting. But it's also very easy for the IRS to spot. Luxury items like fur coats, yachts, and extended vacations are obviously not Business Expenses. IRS Small Business problems can grow out of control when you make huge mistakes and claim False IRS Deductions.
The Green Zone: Here are a few things you can feel safe claiming as Business Deductions. The IRS states the items you deduct as Business Expenses must be both "ordinary" and "necessary" (Publication 535)
-Cost of raw materials
-Cost for storage
-Capital expenses (improvements, start-up costs)
-Machinery parts
-Tools
-Office Supplies
Staying on Top with IRS Small Business Issues: Here's a tip for staying on top: when it comes to Business Expenses, the IRS comes first. When it comes to payments, the IRS comes first. Think about it. The IRS is the biggest collections agency in the world. They have the power to shut you down if you don't comply with their rules. So follow the IRS's codes- only claim real business expenses, and don't claim false IRS deductions if you don't want to land in IRS Small Business debt hell.
