Suwanee/Duluth/Norcross CPA…IRS Warns Taxpayers of Fraudulent Business Schemes
Small businesses can be involved in schemes as well, as can home based entities and other small business entities. Staying away from fraudsters who seek to ruin your financial good name and report those promoting fraud to taxing authorities/the IRS. Things to look out for include Those seeking to inflate your business expenses, deduction of personal expenses and misuse of claimed home-based business have become more and more common in the last few years. Working with a reputable CPA will do much to ensure your lowest legal tax bill be paid. False home-based businesses where taxpayers try to manifest the appearance of having a home-based business where none actually exists and deduct purported expenses in the business.
• Illegal schemes have gained popularity because of the aggressive marketing by fraudulent promoters who peddle illegal schemes as methods to reduce tax responsibilities.
• The schemes are considered abusive because they neglect the responsibilities of tax codes and regulations.
• Often the promoters of these schemes will market kits and or packages that will help the customer reduce and obtain more deductions on their taxes. These promoters are to be watched for and avoided at all costs. Don’t fall trey to their slick advertisements and fraudulent claims.
• Ordinary and necessary are key words when it comes to the deductible business expenses on a tax return.
• Never fall for something that seems “too good to be true” BECAUSE it probably is. Business expenses and their adequate documentation is key to running a successful business. Learning the ins and outs of what is required will both raise the efficiency of how you run your business and ensure that you always have proper documentation in the event of an audit. To learn more visit http://www.hiscpa.com/business-expenses.html
Stay safe and keep your eyes open for fraudulent promoters and too great offers. Doing this will keep you, your family, and your finances safe.