A Story to Grow From: The Business Killed by a $27,000 Penalty
Ryan was deep in thought about what he was going to do now that his business was killed by the IRS penalty. Why had he not paid attention to his tax adviser when he told him about the tax law change about the medical reimbursement plan?
The IRS Wants More of Your Money!
The Ground Rules in Playing the Tax Game with IRS Have Been Changed
If you have a business with deductible expenses and you want to keep these deductions, you must have solid documentation of all business expenses.
Here is what is happened already:
- Over the past several years the IRS has addedmany new forms to track your financial activities.
- Many of these new forms, prepared by banks, brokerages, title companies, and other financial institutions, are filed electronically.
- IRS computers cross-match the information from these forms to various income tax returns. A process made more efficient by electronically filed tax returns.
- Computer capabilities have dramatically increased enabling the computers to process more return information to determine audit potential.
Understanding Risk Management
Risk management covers a wide range of business functions including; business legal entity selection and maintenance, insurable areas, safety management, financial accuracy and theft protection, employee actions, and more
Insurable risks of loss
The fact that your business is a limited liability entity helps manage risk to other assets but does not relieve you from certain legal insurance requirements. The following insurances represent the basic types of insurance required.
Business Help Resources
- Can You Use Independent Contractors?
- Doing Business in the 21st Century Electronic World
- How to Get Up and Running
- Notice to LLC Owners
- Ten Essential Business Functional Areas
- The Money Pump
- Understanding Risk Management
- What You Need to Know Before Starting a Business
- What You Need to Know When Your Business Needs Workers