IRS Tax Relief Starts with Knowing Why You’re Being Audited

June 4th, 2018

We’ve been in business long enough to know Los Angeles IRS tax relief is a process you need to work towards once you’re in trouble. One of the best ways of achieving that goal is staying out of trouble. That’s why we’ve put together several reasons why you can be audited.


Not Reporting Income

IRS tax relief

There are lots of business owners who think they can pick up a little cash on the side. While that’s not a problem, not telling the IRS about it can be. For example, if you’re an expert in your field and a publication wants you to write an article for them, it’s all good unless you decide not to report that income.

The chances are the publication you are writing for will submit the correct forms to the government so it’s only a matter of time until you get caught.

Bottom line is, it’s great to make a little extra money but it’ll cost you in the long run if you don’t report it properly.


Claiming A Whack of Charitable Donations

You can get a little IRS tax relief in California by donating to charity. You’d be hard-pressed to find anyone in the government who thinks it’s a bad thing to help each other out that way. However, the people at the IRS become a little suspicious if you’re handing out money to too many different types of non-profits.

Keeping things reasonable and honest is the best practise here. For example, if you make $20,000 a year and claim $15,000 and charitable expenses, you’re more than likely to get audited.

It goes without saying that filing false claims and documentation will get you in more trouble than it’s worth.


Claiming Too Many Work Deductions

This one kind of follows the same rule as charitable donations. Keeping things reasonable and honest is the best way to go when you’re claiming work deductions. There is a simple question to ask yourself before you file the expense. Does what I’m claiming add to my business?

Finally, it’s a good idea if you know the rules before you start claiming home office deductions. The IRS is very strict about what you can claim and what qualifies. For instance, if you have a home business that you work at part-time the chances are you won’t qualify for full-time deductions.

It’s best to remember that IRS tax relief in Los Angeles starts with researching what they will and won’t allow. Trying to bend the rules without doing proper due diligence usually gets you audited.