The IRS Will Audit 6,000 Businesses- Be Prepared

The IRS announced this plans to Audit 6,000 Businesses by February of next year. These randomized audits will crack down on businesses claiming Employees are actually Independent workers- the IRS will also be looking out for the other big Business sins, like improper deductions.

Be prepared: You'll need to have documents for your expenses on hand in case the IRS chooses YOU for a levy. It's particularly importance to have documents for all the Common Allowable Expenses.

How to get Documents for Common Allowable Expenses:

Rent/Mortgage: Show your monthly statement to the IRS. You can call your mortgage company or contact your land lord for this information.

Electric, Water/Sewer, Gas: Call your respective providers to obtain the statements for these expenses.

Prescriptions and Medical Equipment: Go to your pharmacy and ask for a print out.

Health and Life Insurance: Go to your payroll department at work and ask for a pay stub or a Health Insurance printout. If you aren't insured through work, call your insurance company and ask for a statement.

Day Care and/or Elderly Care: A Bank Statement will work if you're paying through debit or credit. Otherwise, request a letter from the care provider.

Alimony and Child Support: You can use pay stubs or divorce documents. Check with your lawyer on this.

Allowable Expenses: The list above covers all of the expense the IRS will allow. Remember that credit card debt does not count as an allowable expense. If you owe the IRS, expect your credit account to fall into disrepair.

Take Away: The IRS wants to prove it's not messing around when it comes to business compliance, and they're staying true to their word. If you have a tax issue with the IRS, now is the time to correct it.