Following are the various services offered to
individuals, farmers, businesses by my firm. If I can help you, please call at
785-743-6447 or
email me at
fbsco531@yahoo.com.
-
Income Tax Return Preparation
- Management advice for your Farm
- Budgeting, Cash flow for Farm Loan Renewal
- Family Farm Transition Planning
- Business Entity for Farms
- Farm Production & Management Planning
-
Nonresident State Tax Returns
-
Part Year State Tax Returns
-
Payroll for Business and/or Housedhold
Employees
-
Self-Employed Proprietorships tax Returns
-
Setting Up Computerized Farm Records
-
Should You Incorporate? Advice
A tax professional should be able to
prepare your tax return to minimize audit potential.
Even if you don't have your tax return prepared by a
professional, and you decided to prepare it yourself, it is a good idea to
have a tax professional review the tax return before filing it.
The tax professional
may be able to suggest certain adjustments or additions to the tax return to
reduce its audit potential, as well as tax planning ideas for current or
future use. If you would like me to review a return that has already been
prepared, please email me at
fbsco531@yahoo.com
or call me at
785-743-6447
for details.
Your return can be faxed
to me and the entire matter can be handled by email, fax, phone calls or snail
mail. Since no appointment is necessary, you barely need to leave your desk.
Richard Wahl offers
accounting services for individuals and businesses including sole
proprietorships, partnerships, LLC, and corporations, specializing in
accounting for farms and agricultural businesses.
How To Avoid A Tax Audit
1. Be exact. Avoid big round numbers with
lots of zeros - the look made-up.
2. Don't get greedy. For example, you've
probably heard the pitches from charities urging you to donate your car so you
can take a write-off. Doing so can flag an audit because some charities and
contributors abuse the system by inflating the value of the donated car.
3. Use attachments to explain unusual items
on your return that you feel are questionable.
4. Be neat. Prepare your return on a
computer (or typewriter).
5. Make sure that the numbers on your W-2 and
form 1099 match the numbers on your tax return.
6. Make sure that the numbers on your W-2 and
form 1099 are reported in the proper place on your tax return. If the amounts
are not reported where the IRS expects them to be reported, your return could
go to an agent's desk where a decision will be made about how much of your
return the IRS wants to review.
7. Check for math and other errors before
mailing. Cross-check to insure that numbers have been carried forward
correctly from subsidiary forms to the proper place3s on the return.
8. An Audit is less likely to occur when you
have a professional with income tax training prepare and sign your tax
return. If this sounds self-serving, it is nevertheless true.
"Red Flags" that may invite an
audit:
1. Large itemized deductions
on Schedule A. If these figures are more than 35-40% of your income, prepare
to be questioned.
2. Large business expenses
on Schedule F (farm) or Schedule C (self-employment). Expenses that are over
60% of gross income will be scrutinized, especially if a hove office is
included with those expenses.
3. Bad-debt losses. Be
ready to prove that the bad debt exists by saving copies of cancelled checks,
collection letters sent, bankruptcy filings, etc. More difficult when with
related parities.
4. Casualty and theft losses.
If possible, find photographs of the lost items, receipt for their
original purchase, appraisals, and insurance settlement papers.
5. Large charitable contributions,
especially if they are more than 20% of your adjusted gross income.
Have on file letters of receipt from the charity as well as qualified
appraisals for non-cash items.
6. Large employee business expenses,
especially entertainment expenses. Keep an accurate
business journal, as well as receipts.
- None of the above means that you should
not take deductions to which you are entitled. If you legitimately incurred a
deductible expense, you should take it and possible other items on that year's
return.
- If the IRS decides to look at one of the
above items on your return, they may very well decide to expand the audit and
look at the entire return.
- Keep a good itemized listing of receipts,
business expenses, log books, and appointment books to document your business
expenses. If you are ever audited, you will be thankful you have these.
Farm Business Service
Copyright @ 2008
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