Capital Gains In Your Retirement Accounts

Information about capital gains can be kept in
various ways accurately and efficiently.
When in doubt, ask your tax advisor!

It’s likely that you’ve had some capital gains. 

Most of the information about capital gains comes from brokerage firms where you keep your investments; but, your capital gains in your retirement accounts are generally not reported unless you've started receiving distributions from them. Other information comes directly from you, the taxpayer.

Keep in mind the following facts:

• The tax rates on capital gains are less than the tax rate on ordinary income. Most commonly, they range from a maximum of 15% to zero. There are special types of capital gains that are taxed at 25% or 28%.

• You can take a net capital loss on your tax return, but that loss can only reduce ordinary income, like your wages, by $3,000, and losses in excess of that amount are carried forward to the following year. Married taxpayers filing separately are limited to $1,500 per year.

• Net capital losses that exceed the annual limit are carried forward to the following year and treated as if incurred in that year.

There are other technical details that might only interest your tax advisor, but here’s what the IRS expects:

1. Anything you own, whether it’s for business, for pleasure, or for investment purposes, is subject to capital gains tax. Everything.

2. You must report all capital gains.

3. You cannot deduct and therefore do not report capital losses on property held for personal use.

As the summer heats up and you decide to get rid of the collectibles piling up in your garage or in some rented storage place, as long as you don't make a profit from selling your stuff, there's little chance that the IRS will audit your failure to report your yard-sale operation; but, just remember that the IRS can.

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Atlanta Georgia Income Tax Preparation,
With GBC Services income tax preparation services, you can rest assured that your taxes will be done right and on time every time.
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Call GBC Income Tax Services today at 678-366-9232 for all your tax and IRS needs!
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• GBC Tax Offers Atlanta Experienced IRS Representation
• Essential Financial Services
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• Visit the Internal Revenue Service's Website
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IRS and Small Business Owners IRS Alert

If you run a small to moderate sized company,
outsourcing options as a means to protect your
investments on the in case of IRS prompted audit.

Many small businesses suffer from the misconception that only big corporations have to worry about exhaustive IRS audits. 

Nothing can be further from the truth.


Why?
The Internal Revenue Service utilizes a different set of criteria for evaluating moderate and small businesses, so there are numerous things that can red flag your company for potential governmental scrutiny that are unique to typical mom and pop ventures.

The most common issue  that creates unwarranted suspicion is the filing of numerous tax deductions and exemptions.  Even if such deductions are legitimate, far  too many of them may  give the IRS the impression, mistaken or other wise, that you are playing fast and loose with tax loopholes, shelters and write offs.  To reduce potential risk of an IRS audit in this regard,  you may wish to mitigate the numbers of deductions you indulge, taking due care to keep all receipts  and documents on hand.  This measure may not only keep you from getting audited, but may very well assist in keeping the business in the black should you wind up  being the unwitting participant of  an IRS evaluation.

Another potential problem that may be more specific to smaller and mid sized business is the correspondence audit. 

Moderate sized companies are in greater danger.

Especially this type of review due to the fact that this type of IRS evaluations focus primarily on  red flags that are specific to more diminutive enterprises. In many cases,  this style of audit may not require a face to face meeting and can be disputed in an informal setting.

Another way to keep the tax man at bay is to outsource your major accounting work. Even if you have an in house bookkeeper or a reliable on staff finance team, it is always a good idea to have another pair of eyes evaluating your books. Not only does it guarantee your financial records will be maintained, it allows for pristine record keeping that reduces IRS related inquiry.

Outsourcing may be especially needful if you undergo a correspondence audit and decide to dispute the outcome. 

Even though these kinds of IRS audits are largely handled via snail mail, they can still be costly and problematic to a small company's bottom line when contested.   Companies that routinely outsource with reputable accounting firms will be able to utilize reliable CPA's to represent them in Tax Court. Additionally, the company will be familiar with your company's in house finance paradigm and can utilize this knowledge to assist you in the pursuit of your goals.

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• GBC Tax Offer Atlanta Experienced IRS Representation
• Visit the Internal Revenue Service's Website
• Atlanta Income Tax Preparation Services
• GBC Tax Income Atlanta Office
• Commonly Used Tax Forms
• Contact GBC Income Tax Services Today! 
• Payroll Taxes for Your Small Business

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Call GBC Income Tax Services today at 678-366-9232 for all your tax and IRS needs!

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What You Should Know About IRS Correspondence Audits

Many of these  types of audits occur when
mistakes in accounting happen.

Much ado has been made about the fact that IRS audits are on the  decline, however, this  does not mean the IRS can't, or won't, come knocking on your door.  This is especially true if you own a small to mid sized company, as these types of  audits are actually on the rise. 

Correspondence Audits and What They Mean for Your Business

When it comes to IRS related tax audits, large and small business can face two kinds. One is the face-to-face audit.  This particular process is largely handled in person, with the agent and business owner pouring over relevant documentation to assess how much money, if any, a business may owe in  taxes.

The type of audit small to moderate sized companies most often face however, is the called a correspondence audit. As the name implies, this type of  IRS review is generally handled via  snail mail, and can be disputed in lower tax courts. Even so, if handled incorrectly,  a correspondence audit can lead to a  closer examination  of your company's financial  records, which could lead to significant payouts.

This is something a struggling small enterprise can ill afford.

Dealing with a Correspondence  Audit

Correspondence audits usually occur after an IRS agent is alerted to potential issues on the company's tax return.  It could be something as simple as a clerical  error or  missing finance  documentation.  In such instances, an agent will send out an official letter to the business owner requesting further information for clarification.

Now, a correspondence  audit may appear innocuous enough but don't be fooled.   These types of government examinations can be a drain on time and financial resources as you try to get he matter sorted.  Making matters worse, there is usually very little recourse for businesses who receive these types of  notices in the mail, as contact information is seldom supplied.  In other words, you  receive  the notice with on o way to call  or ask questions regarding the  issue.  The only other option  a company will have at this juncture is to request an in office meeting with your local  IRS representative, but this request may or may not be honored--and that's perfectly legal.

How to Avoid a Correspondence Audit

When you receive one of these little bomb shells in the mail, you will have to respond to it by law or face heavy fines or penalties.  Many individuals try to gather the requested info and send it off hoping that will end the matter.  This may not always be the case.

As the old saying goes, an ounce of prevention is worth a pound of cure. Many of these  types of audits occur when mistakes in accounting happen.  Or worst yet, the company's finance department has lost or failed to keep up with pertinent records.

Avoiding this scenario may be as simple as hiring an outside accounting firm to handle your financial record keeping and tax filing. GBC of Atlanta is familiar with ins and out of Correspondence Auditing and related disputes and can act on your company’s behalf. Contact us today to learn more about how to protect your financial investments and remain in good standing with the IRS.

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Call GBC Income Tax Services today at 678-366-9232 for all your tax and IRS needs!
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• GBC Tax Offers Atlanta Experienced IRS Representation
• Essential Financial Services
• Tax Requirements By State
• Visit the Internal Revenue Service's Website
• GBC Audit Services

IRS Determination : You Have The Right To Contest

Appealing an IRS Determination

Appealing an IRS Determination – Is It Possible?

You've just undergone an exhaustive IRS audit and your worst fears were realized. You owe money. A lot of it. Money you don't even have.  You are now left with plenty of questions  yet not a ton of options.  At this juncture, you may feel inclined to toss your hands in the air, curl into the fetal position and drown out the world, but don't give up just yet.

Businesses, no matter how large or small, have the right to contest IRS determination in tax court.  What does this mean? It means that the IRS decision isn't necessarily final. If you are able to prove your case in court, you could manage to reduce the fees or eradicate them altogether.

Great!  How Do We Start?

How, when and where you present your case is ascertained by the IRS ruling itself, but first and foremost:

Make Sure  Your Appeal is Valid – To  have your  case effectively heard, it must first fall under the rule of law, tax law in particular.  When it comes to  a tax appeal for example, you can't claim an conscientious objection or exemptions based on moral or religious grounds.   After determining  if your case falls within legal parameters, you can either file a claim using tax form 12203 (for cases where a determination of of $25, 000 or lower was made) and presenting it to the tax courts. If the determination was higher than $25,000 dollars, you will need to  file a formal protest, which is a bit more involved.  After all pertinent information if received, the courts will schedule a conference where they'll address your concerns  and assess them for validity.

Know What You Are in For – Disputing a tax assessment is not the same as appealing a civil or criminal case.  One major difference is that you won't see the individual who audited you at this point.  Rather,  an appeals officers will be assigned  to your case and the process will begin with them. Because the appeals officer is unfamiliar with your case and  may not have ties with the agent who audited you,  you could feel as if you'd have a better chance at getting heard and resolving the matter  to your satisfaction.

File Within the Allotted Time Limits – bear in mind that there is a  tiny window of time to appeal the decision, usually  30 days.  If you don't file your appeal  within the scheduled frame, you will lose the right to have your case heard.    The process is informal and can be done via letter correspondence or in face to face meetings. If you fear  you won't have time to address the case, you should consider having someone serve as  representative in your stead.

Hire a Knowledgeable  Representative – In cases where you wish to appeal an IRS ruling, it is best to hire a qualified CPA, Tax Attorney or  Agent  to go over your case and accompany you to hearings.  Someone ill equipped for the job  could end up costing you  your one chance to remove a heavy debt load from your shoulders.  If you decide to let someone speak on your behalf, be sure they have the expertise and know how to present your case well.

At the need of the day, most Americans are unaware that they can  even dispute an IRS audit ruling. If you have been audited recently, now would be to perfect time to claim your right to an appeal.  A step in the right direction would be to hire a expert CPA, such as the ones found at  GBC Income Tax Services of Atlanta.  Don't put your future as risk by doing nothing...start the appeals process and see what you can do to reverse  the decision and  get your business back on the fast track.

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• About GBC Services
• GBC Audit Services Website
• Visit the Internal Revenue Service's Website
• GBC Tax Income Atlanta Office
• Chartered Global Management Accountant (CGMA)
  American Institute of Certified Public Accountants (AICPA)
  GBC Services LLC, Tax Accounting Services for Atlanta GA
  GBC Press Release : MORE

Facing the Dreaded Audit By The IRS

The Dreaded IRS Audit - What Actions You Should Take

The IRS has targeted you and your company for a comprehensive audit. 

You've done everything  humanly possible to avoid it, but  your worst fears have been realized. Before you  fling  yourself headlong into panic mode and start checking out real estate in Tahiti, relax. An audit  isn't necessarily the end of the world, especially if you know what to do  in preparation for one.

Great – I am Being Audited – Now What?

An audit can be particularly stressful for  both employer and employees alike.  While the business  owner worries about potentially  being fined, paying exorbitant fees or worse, going to jail, dependent  workers wonder if they could lose their primary source of income should the business go under.
With so much at stake, corporation undergoing a tax audit will need to ensure they have everything on hand to make the process go as smooth as possible.

Gather all pertinent file, records  and documents –this is  the most important aspect of preparedness that cannot be stressed enough. The inability to a locate or present documents  can provide IRS agents with enough fodder to fine   you or claim criminal intent on your part.   Indeed, companies that are able to provide relevant records and books are least likely to face serious consequence after an exhaustive audit.

Do Your Home work – A little research can go a long way in not only helping you feel more secure, but in educating you on what you will need throughout the IRS auditing process. One thing that may surprise you is that the IRS aren't the big evil boogeymen they are made out to be, in fact, they   will and often do consider the fact that employees are prone to human error.  At the end of the day, only a small handful of audits result in serious  citations, fines or arrests.    With that in mind, remember that  they will and often will pursue anything they think to be grossly out to of proportion with the facts presented.

Take a Deep Breathe and – Relax! – The last thing you want to do is raise suspicions that  you have something to hide by acting overly worried. That is not to say pretend everything is A-Okay—just don't get super worked up. Stressing over the matter won't help things anyway, as the best way to ensure you  are going to “beat the system”   is to  do everything in your power  to legally increase the odds of a positive outcome. Seeking the advice of  a well respected accounting firm like GBC Tax Services of Atlanta is one way to  do this.  By outsourcing, you can  go over what needs to be done prior to the IRS agency visit. You  will also be better equipped to ferret out potential problem and solutions before the big day arrives.  In any case, it is always wise to go with  proven experts in the field of accounting  so you know you  you'll be ready when the Tax man comes a-calling.

Once you’ve decided on an expert CPA,  you can have them represent you or be a  part of the process alongside you. In either case, it makes more sense to have a proven and trusted CPA at your side who will help you protect everything you're carefully built. They can also  help you  if you don't like the IRS determination, by taking your case to  tax court on appeal.

But no matter the outcome, it literally pays to do your homework.  Avoid  common business  pitfalls that  lead to  a  negative result after Internal Revenue evaluation by being  proactive on your own behalf. It is the only way to win at life as well as beat tax audits.

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• About GBC Services
• GBC Audit Services Website
• Visit the Internal Revenue Service's Website
• GBC Tax Income Atlanta Office
• Chartered Global Management Accountant (CGMA)
  American Institute of Certified Public Accountants (AICPA)
  GBC Services LLC, Tax Accounting Services for Atlanta GA
  GBC Press Release : MORE

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For All Your Accounting Needs Call GBC 678-366-9232

What to Do During an IRS Audit – The Do’s and Don’ts

Time is on YOUR side
with Good IRS representation

Here are some of the penalties you may face if the IRS audit gives you any trouble:

• 20% Penalty: Usually associated with under or overvaluation of property, disregard of IRS polices & regulations, a substantial understatement of your tax liability, or general negligence.
• 75% Penalty: As you can tell by the large increase in percentage, this is a much more serious issue and can create some serious IRS troubles. Often related to tax underpayments due to fraud, if the IRS believes any portion whatsoever of your payment is fraudulent, you will have to come up with the records that show otherwise. If you cannot do this, then the entire underpayment is hailed as fraudulent, stacking on the hefty 75% penalty.
• Interest Due: Interest accumulates from the due date of your return; this includes extensions, until the date where your penalty is paid. This is for violations that include: negligence, failure to file on time, over or undervaluation of property, and fraud. Penalties that do not include that list will not have any interest charged whatsoever, as long as you pay off the imposed penalty within 21 days and the penalties are under $100,000.
• Prison: The most serious of IRS troubles is the possibility of going to prison, the big bird house. This happens for the most serious cases of tax crimes such as tax evasion. If you get convicted, expect to also accrue much larger fines and be ready to give up all assets and property along with your possible incarceration.

As you can see, running into IRS troubles is a big deal. The best way to handle any IRS audit is to put it into the hands of a trained professional. If any of the above scares you (such as the idea of possibly going to prison), then it is time to hire good IRS representation, such IRS representation can be easily had by calling GBC Atlanta Tax Income Services today.

Call GBC Income Tax Services today at 678-366-9232 for all your tax and IRS needs!
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• GBC Tax Offer Atlanta Experienced IRS Representation
• Tax Requirements By State
• Visit the Internal Revenue Service's Website
• Why Hire a CPA Listed with the BBB

Successful Outcome in Tax Court Proceedings

AVOID Tax Court Drama

There is no surer way to get your assets seized than when the IRS comes knocking on your door. So how can we make sure our businesses are safe, that our taxes are done right, and most importantly, that we will be alright if the IRS decides to show its ugly head at the steps of our business?

Good news for you. If you ever find yourself in a situation where you disagree with the IRS actions proposed upon your business, it is your right (and perhaps duty) to go to Tax Court. At Tax Court you can have a judge review all the information the IRS has gathered and they can rule to see if the actions of the IRS were warranted in the first place.

For people looking for a favorable result in a tax court proceedings, it is noted that often using a Tax Court judge is more effective than looking for solutions down other IRS mediums or modalities. With that said, what kind of thing can LAND you in the Tax Court drama? Watch out for these:

• Denial of an Offer in Compromise
• Refund Claims
• Denial of Innocent Spouse
• The IRS Decision to seize assets (also known as levying)
• Assessment of Tax Liability

If you are going into tax court, do not go alone. Call GBC Income Tax Services today at 678-366-9232 for all your tax and IRS needs!

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• Visit the Internal Revenue Service's Website
• Tax Requirements By State
• GBC Tax Offer Atlanta Experienced IRS Representation
• GBC Support and Consultation

6 Reasons You Should Outsource Your Payroll (Now!)

Outsourcing Your Payroll Service
Adds Up to Big Savings!

A lot of business owners find themselves lost in a bunch of myths when it comes to outsourcing their payroll services.  

For instance, many business owners believe it is too expensive. In reality, outsourcing payroll services can be one of the most cost efficient things your business organization can do.

Which brings them to the next point – their staff is too small. The fact that your staff is small is all the more reason why you should outsource your payroll services. After all, you should be using your staff's resources to going out there and making more money instead of trying to learn how to do payroll themselves.

So what are the 6 reasons to outsource payroll services?

1. One GIGANTIC thing you do not have to worry about anymore. You can go off and do what you are good at, while the professionals handle the frustrating payroll processes.
2. One of the smartest strategies to avoid IRS fines and fees for filing errors
3. You can spend more time delivering your product or service
4. Quick turnaround time (I mean, these guys do do it for a living! You can bet they are quick!)
5. If there is an error that crops up, the payroll company takes all responsibility for it.
6. You're too busy and you have no time to do it yourself, what better way to leverage your time then by hiring professionals?

Call GBC Income Tax Services today at 678-366-9232 for all your tax and IRS needs!
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• Payroll Taxes and Your Business
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Experienced Representation = Success in Tax Court

Don't be intimidated
by the IRS

It can be very intimidating to have to go to court with the Internal Revenue Service regardless of who initiates the proceedings. You know that losing this sort of case can have disastrous financial effects on you for many years to come. Failure to prove your innocence can result in things like seizure of assets, liens, and various other collection actions. You will want every advantage you can get in the courtroom to make sure that doesn't happen.

To prevent these actions, you will need to convince a judge that the collection attempts are unjustified. You may be able to get much better results by pursuing your day in court with the proper representation rather than by trying to go it alone. What may cause you to want to go to tax court? Here are a few potential reasons for contesting taxes:

• The IRS attempts asset seizure
• An attempt to claim an unreceived refund
• An offer of compromise is denied
• Claim to be an innocent spouse is denied
• A desire to reassess the taxes you are liable for

In any of these various cases, a great number of tax laws apply. Trying to navigate such case on your own can be difficult if not virtually impossible. Why try to do something that is so important without the proper support in your corner?

The right Atlanta tax representation may be able to help you clear up your tax issue for good and avoid penalties and other undesirable outcomes, so get the help that you need. It will be well worth it.

Very often when an issue arises, you have a limited amount of time to try and resolve the issue. This would include filing for any necessary court proceedings. Even if you feel too much time has passed, an experienced professional may be able to help you get matters taken care of, so don't give up hope. Get a consult on your situation with no obligation, and start working on getting your peace of mind back today. You can have a successful day in tax court.
Get the right representation from an experienced individual.
Look for someone with the right reputation.
Make sure they know your situation well and have experience with the particular circumstances you are dealing with. This will ensure that you have the best chance of getting the desired result in court.

Call GBC Income Tax Services today at 678-366-9232 for all your tax and IRS needs!
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• GBC Tax Offer Atlanta Experienced IRS Representation
• Essential Financial Services
• Tax Requirements By State
• Visit the Internal Revenue Service's Website

Help the Success of the External Audit by Educating Your Professional Team on the Characteristics of Skepticism.

Expect your external auditors to
embrace a professional level of
skepticism in order to succeed.

Skepticism is integral to the conduct of external auditors. But the exercise of skepticism should not be limited to external auditors. Even if not codified in law or regulation, deterrence and detection of financial reporting fraud requires all participants in the financial reporting supply chain to exercise skepticism.

Skepticism is a questioning mindset, and it requires an understanding that even the best organizations can be susceptible to fraud. Management, audit committees, and internal auditors, at a minimum, should take a “trust but verify” approach with systems, methods, and communications rather than accept critical information at face value.

Skepticism is not an end in itself and is not meant to encourage a hostile atmosphere or micromanagement. The word skepticism, in fact, comes from the Greek word skeptikos, which means “inquiring” or “reflective.”

Is skepticism a set of personality traits, or is it a learned skill? The short answer is both. We will consider skepticism as an individual characteristic, albeit with multiple dimensions, listed as follows:

• Questioning mind—A disposition to inquiry, with some sense of doubt
• Suspension of judgment—Withholding judgment until appropriate evidence is obtained
• Search for knowledge—A desire to investigate beyond the obvious, with a desire to corroborate
• Interpersonal understanding— Recognition that people’s motivations and perceptions can lead them to provide biased or misleading information
• Autonomy—The self-direction, moral independence, and conviction to decide for oneself, rather than accepting the claims of others
• Self-esteem—The self-confidence to resist persuasion and to challenge assumptions or conclusions

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READ MORE>> www.thecaq.org: The Fraud-Resistant Organization

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•     About GBC Services
•     GBC Audit Services Website
•     Visit the Internal Revenue Service's Website

What the IRS Looks for to Flag for an Audit

Contact GBC Audit Services today.

"The IRS examined 1.1 percent of all individual tax returns in 2010 and 2011, so the chances that your tax return will be audited are only about 1 in 90." -Moneywatch.

That is the good news, but nevertheless it's wise to be prepared, since being chosen for this is an unpleasant experience. Hire external auditors to come and evaluate your company for you and ensure you are taking care of business. Here is a brief summary of how the IRS looks for returns to audit:

The IRS uses a computerized process to check all tax returns for math and clerical errors, such as incorrect Social Security numbers and addresses, and also runs tax returns through a process that compares the information you report from your bank, employer, and W-2, 1099 and other forms and documents. If you omit an item from your tax return, it's very likely to be picked up by the IRS's computers.

A few newer items that can trip up some taxpayers include payments received by businesses from credit and debit cards and investors who report the sale of their investments. These amounts are reported by banks etc and it's important the amounts be accurate. Also, individuals who report gains from the sale of their investments should also take note that the securities industry is now reporting to the IRS the cost basis of investments that were sold as the gross proceeds from the sale.

Meanwhile, the IRS assigns numerical weights to certain tax return characteristics. These weights are added together to obtain a national composite score for all tax returns. When the total score of all selected items on your tax return exceeds the national average score set by the IRS, the agency will flag the return for a possible audit. The exact items the IRS zeroes in on and scoring method is a closely guarded secret, but some of the things the agency is believed to scrutinize include:

• Large amounts of income not subject to tax withholding 
• Unusually large amounts of deductions claimed than seem unreasonable when compared to your income 
• A large number of dependent exemptions claimed that doesn't square wtih reported SSNs, tax withholding allowances and so forth 
• Large deductions for charitable contributions, casualty losses, home office expenses, and travel and entertainment expenses 
• Indicating a change of address when not reporting a sale of your residence and not changing your home related deductions

While an IRS audit is not something most sane folks want to go through, it also isn't something to be feared. If you have kept complete and accurate records of all of your deductions and have reported all of your income, you should be fine. In fact, in about a quarter of audits, the IRS makes no changes or issues a refund. Contact GBC Audit Services today to arrange for smooth-sailing this tax season.

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READ MORE>> www.CBSNews.com: "What Triggers an IRS Tax Audit?"

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READ MORE GBC Tax Services Website
For All Your Accounting Needs Call GBC 678-366-9232

8 Areas to Focus on to Avoid a Tax Audit

Stay Alert, Stay Aware!

FACE IT; 

you don't have much time on your hands as a small business owner to deal with combing through every aspect of your financial records to avoid an audit.

With the help of a professional CPA, you can easily prepare and avoid pitfalls by being aware of the most common triggers of an audit.

The IRS uses a computer program called the Discriminate Function System (DIF) that analyzes returns and flags them if they are outside statistical norms. When a return receives a high DIF score, an agent reviews it to determine if it should undergo an audit.

Therefore, here are the appropriate areas to ensure are squeaky clean:

1. IF YOU HAVE A HIGH INCOME: 0.9 percent of people who make less than $200,000 were audited last year, compared to 10.9 percent of those who made $1 million or more.
2. OUT OF PROPORTION DEDUCTIONS: The IRS uses tables to determine how much is too much for different income brackets when it comes to deductions, although the tables are not made public. For example, an IRS agent will want to know more if you claim charitable deductions that are not in line with your income.
3. ROUNDING AND AVERAGING YOUR NUMBERS: Most folks appreciate rounding, but when it comes to IRS Agents, they  tend to believe that if you’re sloppy in this area, the rest of your return may not be entirely accurate.
4. HOME OFFICE DEDUCTIONS ARE TRICKY: The requirements necessary to take this deduction are not relaxed. Many don't know that a portion of a room does not qualify, even if that large corner of your bedroom is taking up space where you don't do anything personal. Click here for the Simplified Option for Home Office Deduction that the IRS came up with last year. And follow the rules!!
5. IF YOU CLAIM BUSINESSES LOSSES YEAR AFTER YEAR: The IRS may assume you are taking deductions you’re not entitled to in order to avoid paying taxes. They know, for example, that many claim hobby expenses (follow link to read more) as business losses, which is illegal under the tax code.
6. FILING SCHEDULE C DOES INVITE MORE SCRUTINY: But don't let fear of an audit keep you from claiming legal deductions. Just do it accurately and keep clean records. Or, if you think it may be time to set up your business as a separate entity instead, read more here.
7. EXCESSIVE BUSINESS ENTERTAINMENT DEDUCTIONS: If you’re going to deduct these types of expenses, you must keep records for each write-off that includes when and where it occurred, who was in attendance, the purpose as it relates to your business, and a record of what was talked about. You’ll also need to keep receipts for expenses greater than $75 when you’re traveling for business.
8. CLAIM YOUR VEHICLE FOR 100% BUSINESS USE? This will raise a flag. Also, when deducting for business use of a car, you’ll have to choose between the IRS standard mileage rate and actual expenses. Deducting both of these on your tax return will bring the IRS knocking.

So be smart and make sure you consider these issues in your tax records carefully, but then relax, for there is good news: 

The new IRS Commissioner John Koskinen said that last year less than 1 percent of all returns underwent an audit, and only 0.6 percent of business returns (meaning 0.006)!

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READ MORE>> QuickBooks.Intuit.com: The 8 Most Common Tax Audit Triggers

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•     About GBC Services
•     GBC Audit Services Website
•     Visit the Internal Revenue Service's Website

7 Red Flags to Trigger an Audit: 7 of 7

Be shrewd and hire a good CPA
with external auditing and IRS
Representation experience: GBC

When it comes to audits of your small business taxes by the IRS, we are basically all...

GUILTY UNTIL PROVEN INNOCENT!
*Call GBC Services at 678-366-9232 for immediate assistance*

If you've been chosen for an audit, the burden is unfortunately on you to answer the IRS' questions and to prove anything you claimed. They will be sniffing around aggressively for any unreported or under-reported income, along with over-stated deductions, as that is their job. Excuses of losing paperwork or being unaware will not work. Make sure you're on the ball!

*This is a series of 7 red flags to avoid, to help you not invite an audit. Hopefully you can escape this stress... Here is the final point #7:

*CASH BUSINESSES BEWARE:

*Cash-intensive businesses, such as beauty salons, restaurants and car washes, will always be under closer IRS scrutiny, as they are more likely to under-report taxable income.

To avoid an audit: Beware of warnings, follow procedure, keep good records, hire a CPA, and don't ever ignore tax notices. If you do get audited, be very cooperative and maintain a good attitude with them, and your CPA should be able to handle any IRS Representation for you.

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READ MORE>> www.AmericanExpress.com (from Small Business "OPENForum"): 7 Red Flags That Could Get Your Small Business Audited

Call GBC Income Tax Services today at 678-366-9232 for all your tax and IRS needs!
--------------------------------------------------

READ MORE

• GBC Tax Offers Atlanta Experienced IRS Representation
• Visit the Internal Revenue Service's Website
• GBC Audit Services

7 Red Flags to Trigger an Audit: 6 of 7

Check in next month to learn
about the next red flag to avoid!

When it comes to audits of your small business taxes by the IRS, we are basically all...

GUILTY UNTIL PROVEN INNOCENT!
*Call GBC Services at 678-366-9232 for immediate assistance*

If you've been chosen for an audit, the burden is unfortunately on you to answer the IRS' questions and to prove anything you claimed. They will be sniffing around aggressively for any unreported or under-reported income, along with over-stated deductions, as that is their job. Excuses of losing paperwork or being unaware will not work. Make sure you're on the ball!

*This is a series of 7 red flags to avoid, to help you not invite an audit. Hopefully you can escape this stress... Here is #6:

*CLAIMING 100 PERCENT BUSINESS USE OF A VEHICLE:

*If the vehicle is not designated for business use and there is no separate vehicle available for personal use, the business owner needs to maintain detailed mileage logs and calendar entries for the purposes of each trip.

To avoid an audit: Beware of warnings, follow procedure, keep good records, hire a CPA, and don't ever ignore tax notices. If you do get audited, be very cooperative and maintain a good attitude with them, and your CPA should be able to handle any IRS Representation for you.

--------------------------------------------------
READ MORE>> www.AmericanExpress.com (from Small Business "OPENForum"): 7 Red Flags That Could Get Your Small Business Audited

Call GBC Income Tax Services today at 678-366-9232 for all your tax and IRS needs!
--------------------------------------------------

READ MORE

• GBC Tax Offers Atlanta Experienced IRS Representation
• Visit the Internal Revenue Service's Website
• GBC Audit Services

7 Red Flags to Trigger an Audit: 5 of 7

Check in next month to learn
about the next red flag to avoid!

When it comes to audits of your small business taxes by the IRS, we are basically all...

GUILTY UNTIL PROVEN INNOCENT!
*Call GBC Services at 678-366-9232 for immediate assistance*

If you've been chosen for an audit, the burden is unfortunately on you to answer the IRS' questions and to prove anything you claimed. They will be sniffing around aggressively for any unreported or under-reported income, along with over-stated deductions, as that is their job. Excuses of losing paperwork or being unaware will not work. Make sure you're on the ball!

*This is a series of 7 red flags to avoid, to help you not invite an audit. Hopefully you can escape this stress... Here is #5:

*SHIFTING INCOME TO TAX-EXEMPT ORGANIZATIONS SUCH AS CHARITIES TO AVOID PAYING TAXES:

*This is considered tax abuse. Click here for further understanding (Washington Post).

To avoid an audit: Beware of warnings, follow procedure, keep good records, hire a CPA, and don't ever ignore tax notices. If you do get audited, be very cooperative and maintain a good attitude with them, and your CPA should be able to handle any IRS Representation for you.

--------------------------------------------------
READ MORE>> www.AmericanExpress.com (from Small Business "OPENForum"): 7 Red Flags That Could Get Your Small Business Audited

Call GBC Income Tax Services today at 678-366-9232 for all your tax and IRS needs!
--------------------------------------------------

READ MORE

• GBC Tax Offers Atlanta Experienced IRS Representation
• Visit the Internal Revenue Service's Website
• GBC Audit Services

Hiring An Accounting Firm for Your Small Business is Essential

A high-quality accounting

firm will address the payroll

concerns of your company.

HIRE A GEORGIA TAX PROFESSIONAL

For any Georgia business to survive in the ever turbulent corporate arena, it has to build on a firm and sensible foundation. One fundamental building block is locating the right accounting solutions in Atlanta, Georgia.

Many small companies make the mistake of assuming that taking on payroll and accounting roles themselves will save money.

What most small business owners do not know is that high quality Atlanta accounting services are surprisingly affordable for small to medium size companies.

Once your company makes the decision to hire an accounting firm in Atlanta, Georgia, you could soon discover that the investments.....


READ MORE > GBC Tax Services Website
For All Your Accounting Needs Call GBC Tax 678-366-9232

7 Red Flags to Trigger an Audit: 4 of 7

Check in next month to learn
about the next red flag to avoid!

When it comes to audits of your small business taxes by the IRS, we are basically all...

GUILTY UNTIL PROVEN INNOCENT!
*Call GBC Services at 678-366-9232 for immediate assistance*

If you've been chosen for an audit, the burden is unfortunately on you to answer the IRS' questions and to prove anything you claimed. They will be sniffing around aggressively for any unreported or under-reported income, along with over-stated deductions, as that is their job. Excuses of losing paperwork or being unaware will not work. Make sure you're on the ball!

*This is a series of 7 red flags to avoid, to help you not invite an audit. Hopefully you can escape this stress... Here is #4:

*EXCESSIVE DEDUCTIONS FOR BUSINESS MEALS, TRAVEL AND ENTERTAINMENT:

*Maintain receipts for all expenses, along with detailed records, and don’t overstate these expenses.

To avoid an audit: Beware of warnings, follow procedure, keep good records, hire a CPA, and don't ever ignore tax notices. If you do get audited, be very cooperative and maintain a good attitude with them, and your CPA should be able to handle any IRS Representation for you.

--------------------------------------------------
READ MORE>> www.AmericanExpress.com (from Small Business "OPENForum"): 7 Red Flags That Could Get Your Small Business Audited

Call GBC Income Tax Services today at 678-366-9232 for all your tax and IRS needs!
--------------------------------------------------

READ MORE

• GBC Tax Offers Atlanta Experienced IRS Representation
• Visit the Internal Revenue Service's Website
• GBC Audit Services

7 Red Flags to Trigger an Audit: 3 of 7

Check in next month to learn
about the next red flag to avoid!

When it comes to audits of your small business taxes by the IRS, we are basically all...

GUILTY UNTIL PROVEN INNOCENT!
*Call GBC Services at 678-366-9232 for immediate assistance*

If you've been chosen for an audit, the burden is unfortunately on you to answer the IRS' questions and to prove anything you claimed. They will be sniffing around aggressively for any unreported or under-reported income, along with over-stated deductions, as that is their job. Excuses of losing paperwork or being unaware will not work. Make sure you're on the ball!

*This is a series of 7 red flags to avoid, to help you not invite an audit. Hopefully you can escape this stress... Here is #3:

*UNREASONABLY HIGH SALARIES PAID TO SHAREHOLDERS WHO ARE ALSO EMPLOYEES:

*Determine reasonable salaries for your type of business based on industry, skill level and geographic location.

To avoid an audit: Beware of warnings, follow procedure, keep good records, hire a CPA, and don't ever ignore tax notices. If you do get audited, be very cooperative and maintain a good attitude with them, and your CPA should be able to handle any IRS Representation for you.

--------------------------------------------------
READ MORE>> www.AmericanExpress.com (from Small Business "OPENForum"): 7 Red Flags That Could Get Your Small Business Audited

Call GBC Income Tax Services today at 678-366-9232 for all your tax and IRS needs!
--------------------------------------------------

READ MORE

• GBC Tax Offers Atlanta Experienced IRS Representation
• Visit the Internal Revenue Service's Website
• GBC Audit Services

7 Red Flags to Trigger an Audit: 2 of 7

Check in next month to learn
about the next red flag to avoid!

When it comes to audits of your small business taxes by the IRS, we are basically all...

GUILTY UNTIL PROVEN INNOCENT!
*Call GBC Services at 678-366-9232 for immediate assistance*

If you've been chosen for an audit, the burden is unfortunately on you to answer the IRS' questions and to prove anything you claimed. They will be sniffing around aggressively for any unreported or under-reported income, along with over-stated deductions, as that is their job. Excuses of losing paperwork or being unaware will not work. Make sure you're on the ball!

*This is a series of 7 red flags to avoid, to help you not invite an audit. Hopefully you can escape this stress... Here is #2:

*CONSISTENT LATE FILING OF TAX RETURNS AND PAYMENT OF TAXES: 

*Failing to follow filing requirements and meet deadlines triggers penalties, interest and unwanted attention. Always ask for an extension if you won’t be able to meet a deadline.

To avoid an audit: Beware of warnings, follow procedure, keep good records, hire a CPA, and don't ever ignore tax notices. If you do get audited, be very cooperative and maintain a good attitude with them, and your CPA should be able to handle any IRS Representation for you.

--------------------------------------------------
READ MORE>> www.AmericanExpress.com (from Small Business "OPENForum"): 7 Red Flags That Could Get Your Small Business Audited

Call GBC Income Tax Services today at 678-366-9232 for all your tax and IRS needs!
--------------------------------------------------

READ MORE

• GBC Tax Offers Atlanta Experienced IRS Representation
• Visit the Internal Revenue Service's Website
• GBC Audit Services

7 Red Flags to Trigger an Audit: 1 of 7

Check in next month to learn
about the next red flag to avoid!

When it comes to audits of your small business taxes by the IRS, we are basically all...

GUILTY UNTIL PROVEN INNOCENT!
*Call GBC Services at 678-366-9232 for immediate assistance*

If you've been chosen for an audit, the burden is unfortunately on you to answer the IRS' questions and to prove anything you claimed. They will be sniffing around aggressively for any unreported or under-reported income, along with over-stated deductions, as that is their job. Excuses of losing paperwork or being unaware will not work. Make sure you're on the ball!

*This is a series of 7 red flags to avoid, to help you not invite an audit. Hopefully you can escape this stress... Here is #1:

*REPORTING A NET LOSS IN YOUR BUSINESS FOR MORE THAN 2 OUT OF 5 YEARS:

*You will be well-advised to follow the IRS Publication 535 guide for business expenses, because if a business cannot satisfy three years of profits in a five-year period, it will likely get audited.

To avoid an audit: Beware of warnings, follow procedure, keep good records, hire a CPA, and don't ever ignore tax notices. If you do get audited, be very cooperative and maintain a good attitude with them, and your CPA should be able to handle any IRS Representation for you.

--------------------------------------------------
READ MORE>> www.AmericanExpress.com (from Small Business "OPENForum"): 7 Red Flags That Could Get Your Small Business Audited

Call GBC Income Tax Services today at 678-366-9232 for all your tax and IRS needs!
--------------------------------------------------

READ MORE

• GBC Tax Offers Atlanta Experienced IRS Representation
• Visit the Internal Revenue Service's Website
• GBC Audit Services