How a Los Angeles Revenue Officer Can Help You to Avoid an Audit


September 24th, 2018

A professional Los Angeles revenue officer is an expert at helping your small business stay afloat. They understand all of the tax laws and what you can and you cannot deduct. Having one of these professionals on your side is just as important as having a good product or service and great marketing team.

Here’s a few quick tips from these professionals about how to avoid being audited.

 

Go Over Those Numbers

If you make a lot of mistakes on your tax return as a small business owner, the chances of getting audited skyrocket. The first tip here is a pretty simple one — make sure to have someone go over your numbers before you file.

Of course, a professional accountant or enrolled agent who do this kind of work for a living make sure accuracy is one of the cornerstones of their business. However, if you decide to go it alone you should be very careful because the IRS will be watching your addition and subtraction closely.

Although it’s not the best practice, here’s another tip that you want to keep in mind if you plan on doing your taxes alone. If you show a loss in a few consecutive years or twice in the span of five years, you’re more than likely going to be audited.

 

Watch Those Expenses

It’s important that you keep all the documentation for your expenses so they can match up with deductions in your bank accounts. Overstating and not having proper receipts for claims that you make is another sure-fire way to get on the government’s radar.

Making sure that you stay on the right side of the IRS is important for your business. A Los Angeles revenue officer who has left the job and joined an accountant’s  will be able to help you steer clear of any troubled financial tax waters.

 

Ratio of Employees

It’s a good idea to make sure that you have a good ratio of employees and independent contractors working for you. If you’ve got too many outsourced contractors on your books, you stand a chance of becoming even more scrutinized.

Finally, remember to be careful with any home office deduction. Years ago, even having a home office was a red flag to auditors, but that’s changed with the gig economy and the number of freelancers working today.

Still, you need to know the requirements like the fact that a home office needs to be a room that’s used only for business. A Los Angeles revenue officer can help you with some of the other requirements.