Two Rules For The Self Employed
Posted by admin on Feb 1, 2008
As much as the government enjoys the creation of new businesses, it just as much scrutinizes them because according to the IRS they are the most likely to cheat on their taxes. The government watches this carefully.
There are two things that you need to keep in mind to avoid the problems that many self employed people go through. Even in an audit, you are protected if you can simply follow these two rules. First, report all of your income. You need to be sure that your income is accurately reported because this is a key target for auditors. Second, be sure that you only claim business expenses that you have actually paid for and that are solely for your business.
Ultimately, you need to keep records of all of this so as prove anything that you say. Anything that you cannot prove is subject to the auditor’s question later.