Tax Tips: Avoid an IRS Audit

IRS AUDIT LANDMINES TO AVOID

  • Here is a copy of an email I sent to a doctor who was using another CPA firm:
  • The business tax returns were “riddled” with IRS “red audit flag risk dangers”.  S corporation profit was too high compared to your payroll from the dental practice. This is the #1 IRS audit issue for S corporations.
  • Interest must be paid during the year on loans from the practice to you.
  • Unreimbursed expenses should have been paid through the practice and not taken as an  “add on” deduction. IRS matches S corporation K-1s to the personal tax returns . In this case, there isn’t a match.  This serious error could trigger an audit and the interest expenses would be disallowed in an IRS audit.
  • AMX credit card is being used to pay personal expenses and business expenses when there should be two credit for tax and legal purposes.
  • Auto business usable percentage does not make sense at 75.00%.
  • You are definitely  missing  “easy” tax deductions.

Contact Jeffrey Brooks or call 602-292-2009 today for other Tax Savings Advice.

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About Jeffrey Brooks

Jeffrey Brooks, CPA, CFP, MBA since 1976 has specialized in helping clients save significant taxes, help businesses increase their cash flow, revenues and profits while increasing their control and satisfaction. Jeff and his accounting firm sincerely cares about the happiness of his clients.

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JBrooks Wealth Advisors, PC.

Certified Public Accountant
Address: 4647 N 32nd Street, Suite B245
Phoenix, Arizona 85018
Phone: 602-292-2009
Email: jeff@jbrookswa.com