Understanding Your Special K’s – 1099-Ks are now being subject to underreporting IRS audits
Understanding Your Special K’s – 1099-Ks are now being subject to underreporting IRS audits The IRS recently announced it is going to conduct automated audits of 1099-K filings against business income. This includes unicorporatated small businesses filing Schedule C with their Form 1040. How do you protect yourself from this audit risk? For the first time, the IRS is reporting that it will be comparing filed 1099-Ks against income reported on business tax returns (including those reported on 1040 Schedule C tax returns). Knowing how this impacts you can save you an unwanted IRS correspondence audit. Background A couple of
When Filing a Tax Extension May Make Sense
When Filing a Tax Extension May Make Sense Should you always file your tax return on or before the due date? Surprisingly, sometimes the answer is no. Here are some examples of when filing a tax extension might make sense. While taxes owed are always due on or before the filing date of April 15th, taxpayers have the option of filing a tax extension that effectively moves their filing date to October 15th. Is this ever a good thing to do? Sometimes the answer is yes. For most of us: file on time It is almost always best to file
Do You Need to File a Tax Return?
Do You Need to File a Tax Return? Too many assume they are not required to file a tax return. Knowing that it is possible to receive a refund even if no tax is due, should be reason enough to review your situation. Here are some tips. Too many taxpayers assume they are not required to file a tax return and end up losing a potential refund. To help ensure this does not happen to you, here are some common things to help you decide whether a review of your situation is in order. Know the triggers. You are required