| Tax Man is Coming: Small Businesses beware. The | | | | The Green Zone: Here are a few things you can feel |
| IRS has you under a microscope. Even your tiny IRS | | | | safe claiming deductions on. The IRS states the items |
| related decisions are magnified. A lot of business | | | | you deduct must be both "ordinary" and "necessary" |
| owners get greedy and decide to list some personal | | | | (Publication 535) |
| expenses as business expenses on tax deductions. | | | | -Cost of raw materials |
| But be warned, you will not slip under the radar for | | | | -Cost for storage |
| long. | | | | -Capital expenses (improvements, start-up costs) |
| The Red Flags: IRS auditors scan tax returns closely. | | | | -Machinery parts |
| There are some key red flags that indicate Tax Fraud: | | | | -Tools |
| - Huge Deductions: If the sum of money you are | | | | -Office Supplies |
| claiming for your deduction seems ludicrous, the IRS is | | | | Staying on Top: Here's a tip for staying on top: when it |
| going to audit your tax return. | | | | comes to business matters, the IRS comes first. When |
| - Personal Expenditure: Listing personal expenditure as | | | | it come to payments, the IRS comes first. Think about |
| business expenditure is temping. But it's also very easy | | | | it. The IRS is the biggest collections agency in the |
| for the IRS to spot. Luxury items like fur coats, yachts, | | | | world. They have the power to shut you down if you |
| and extended vacations are obviously not used for | | | | don't comply with their rules. So follow the IRS's codes |
| business. And don't try to claim buying these things | | | | and don't get greedy. |
| helped improve your Public Relations, either. | | | | |