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After you receive an audit notice from the IRS there is nothing you can do to avoid it. However, there are some things you can do to reduce the chances of being chosen in the first place.
The dreaded IRS audit. After you receive an audit notice from the IRS there is nothing...
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There are two accounting methods for recording income and expenses, called the cash and accrual methods. These are two sets of rules for the timing of income and expenses.
A venture's income and expenses must ordinarily be reported in the year in which they occur. (Normally...
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All costs of getting a business started—before commencing operations—are not current expenses but are capital items, including advertising, travel, office supplies, utilities, repairs and employee wages. (IRC § 195.)
Under the tax code, these start-up expenses must be...
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All enterprises must keep their books based on accounting periods, called tax years. For individuals, the tax year is the same as the good old calendar year starting on January 1 and ending on December 31. Most small businesses are required to use the calendar year, too.
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If your business is a sole proprietorship that has employees or if your business is a partnership, limited liability company or corporation, you must get a federal Employer Identification Number (EIN). You will use this number on all business-related forms you send to the IRS....
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What can you do to improve your business tax situation before the year ends?
Determine Your Business Profit or Loss
Bring your accounting up-to-date. Know where your business stands from a profit or loss perspective. This will make your year-end planning more efficient...
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