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1. Unreported Income
​One of the easiest ways to catch the IRS’ eye is not to report all of your income. If someone had you fill out a 1099, they reported it to the IRS. However, if you forgot to mention it as well, things won’t add up, and they’ll definitely think that you’re intentions are less than honorable.

2. Business Deductions are Too High 
Many think that working from home is enough to warrant receiving the home business deductions so they can save on meals out, travel expenses, vehicles, and even entertainment. Deductions that are higher than earnings may look suspicious if it occurs for more than three years.

3. Operating a Cash Business
If you run a cash only business, you absolutely need to have some form of paper trail. Because the IRS knows that much of these transactions can go without any sort of trace, they can easily wind up in the IRS’ crosshairs. As long as you can prove you aren’t hiding it all, you can reduce the amount of flags you raise.

4. Improper Deductions
Some think that being a local business owner means writing everything off. Unless the right deduction codes are used and items like claiming vehicles that double as personal use are deducted, the IRS will know you’re claiming too many deductions. Tax returns of 20% or higher than average will quite possibly get flagged. ​

​10. Using a Bad Tax Preparation Service or Accountant
If a New Orleans Accountant or Bookkeeping service is a little too good at their job, they may get flagged by the IRS. So by association, you will be flagged for using them. There’s a fine line between getting the return that you deserve, and getting a fat paycheck from Uncle Sam that shouldn’t be happening.

​At Accounting Services Unlimited, LLC, we can ensure that the IRS will leave you alone and give you the audit protection you deserve. To make sure you're getting the best return or need an expert New Orleans accounting firm or bookeepper, call today to schedule your consultation and get through the upcoming tax season the safe & convenient way.

Everyone knows that they should regularly keep up with their taxes, but, if you're like many, you probably wait to do it a week before they need to be submitted. As 2016 comes to a close, there are a few things to consider for the 2017 tax season.

1. Make Sure the Year is Balanced
   If you’ve been the diligent type, then it’s time to make sure that all of your receipts and records even out before January 1st gets here. If applicable, you can begin distributing 1099 and W-2 forms. It’s also a good idea to reconcile your notes payable to keep up with debts owed, as well as any remaining payroll items for the year. 
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2. Utilize a Checklist
   While many rely on a series of sticky notes plastered all over their computer screen, a dedicated tax checklist will speed the process along and help keep you focused and organized. How many times have you thought that you were finally finished, only to realize you left something out? A checklist is easy enough to make, and you can find a template online for one of these with a quick search.
   
   
3. Take Advantage of Gifts
   Each individual can give up to $14,000 annually as tax-free gifts. If you have someone who 's hard to buy for on your Christmas list, cash is always appreciated. Just ensure that you’re giving it to them correctly and not accidentally breaking the rules. Speaking of giving, make sure you have records of all charity contributions for the year. By having them recorded now, it will save a ton of time later, and will give you a better idea of what you're you’re going to owe. 
   
   
4. Utilize Your Retirement
   Each year, if you have a Roth IRA retirement account, you can place $5,500 tax-free into your account. Because Roth IRAs are not taxed until after the money comes out, you can potentially rack up a ton in savings before the IRS gets to touch it. As with any investment account, there are many stipulations, so it’s best to meet with a financial advisor before going nuts trying to max out your account. The good news is that if you have a traditional IRA, converting to a Roth IRA account is easy enough to do.  
   
   The end of the year a terrific time to sock additional funds into a 401(K) or other retirement funds if you have one. If you don't have a retirement account, now is a good opportunity to begin one. Many retirement accounts can reduce your taxes owed, or at least incur a deduction. As always, it’s best to meet with an expert to find out the exact rules for your state.
   
   
5. Don’t Wind Up a Scrooge
   Some people think that tax-free gifts can be used to pay for expenses such as tuition and medical costs. While there may be some exceptions, the general rule is that these types of payments, especially to health insurance providers, must be paid directly. On the other hand, make sure that the individual(s) you intend on gifting money to is eligible to receive them. The worst gift of all is thinking you’re getting some extra spending money, only to have to pay it back to Uncle Sam later. 
   
   
6.  Know Your Tax Bracket
   It’s always good to know your tax bracket, particularly if you are an employer. Employers belonging to higher tax brackets not only incur certain surtaxes but are also subject to Medicaid and other withholdings to consider as they reconcile their year-end taxes. 
   
   Having an idea of what your tax bracket requires will help you determine what you can contribute to retirement funds, as well as what you can give away as charity and gift contributions. Knowing what you will owe now will make it easier to submit later on. And, considering it may be a different bracket from the last filling, it never hurts to discover it as you’re thinking about taxes.
   
   
7. Know the Ins and Outs of the AMT
   The AMT, or the Alternative Minimum Tax, is as expensive as it is confusing. While the AMT was started to make sure wealthier fillers didn’t get out of paying their fair share via loopholes (like Donald Trump so famously bragged about), it could, almost 50 years later, wind up costing you a ton without you even realizing it.

With the myriad of tax laws and tax rulings on business owners, it's always best to speak with a tax expert regarding what's best for your specific business type and industry. Remember... a free consultation today, may save you a bundle tomorrow. Schedule a meeting with one of our tax experts today!