491 plain-English guides on small business & bookkeeping, each one ending in what to do next.
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Small businesses with average gross receipts of $32 million or less (2026) can use the cash method and are exempt from complex inventory accounting rules.
Small Business & BookkeepingBusinesses that produce or purchase goods for resale must account for inventory under IRC 471. Businesses that produce, purchase, or sell merchandise.
Small Business & BookkeepingBusinesses that sell physical products must account for inventory, and the accounting method chosen (FIFO, LIFO, weighted average.
Small Business & BookkeepingSmall businesses with inventory must choose an accounting method: FIFO (first in, first out), LIFO (last in, first out), or weighted average cost.
Small Business & BookkeepingA like-kind exchange under IRC 1031 defers capital gains tax when selling business or investment real property and reinvesting in replacement property.
Small Business & BookkeepingUnder IRC 1244, losses on the sale or worthlessness of qualifying small business stock receive ordinary loss treatment (up to $50,000 single.
Small Business & BookkeepingIRC 1244 lets founders deduct losses on qualifying small business stock as ordinary losses, not capital losses. The annual limit is $50,000 ($100.
Small Business & BookkeepingIRC 409A governs nonqualified deferred compensation (NQDC) plans, imposing strict rules on when compensation can be deferred, when it must be paid.
Small Business & BookkeepingThe IRC 83(b) election is one of the most valuable and most frequently missed tax elections available to startup founders, early employees.
Small Business & BookkeepingAn IRC 83(b) election allows a service provider who receives restricted stock or LLC/partnership interests subject to vesting to pay income tax.
Small Business & BookkeepingIRS audit types for small businesses: 1. Correspondence audit (most common). - Conducted entirely by mail. Correspondence.
Small Business & BookkeepingCertain Schedule C characteristics increase audit risk: high deductions relative to income, cash-intensive businesses, round-number expenses.
Small Business & BookkeepingAn IRS audit is not a conviction. It is a review of your return to verify that income, deductions, and credits are reported correctly.
Small Business & BookkeepingAn IRS audit notice is not a criminal investigation. Most audits are correspondence audits resolved by mail. The business owner's response.
Small Business & BookkeepingThe IRS audits approximately 0.4% of individual returns, but certain patterns increase audit risk: high Schedule C deductions relative to income.
Small Business & BookkeepingThe IRS audits about 0.4% of individual returns, but Schedule C filers face higher rates (1-2%). The IRS audits approximately 0.4% of individual tax.
Small Business & BookkeepingMost small business IRS audits are correspondence audits handled by mail. Correspondence audit basics: What triggers one: - Schedule C losses (especially.
Small Business & BookkeepingCP2000 notice essentials: 1. What it is. An automated underreporter notice under the IRS's Automated Underreporter (AUR) program.
Small Business & BookkeepingThe IRS First-Time Penalty Abatement (FTA) under IRM 20.1.1.3.6.1 allows qualifying taxpayers to have failure-to-file and failure-to-pay penalties removed.
Small Business & BookkeepingA business must issue Form 1099-NEC to any individual or non-corporate entity paid $2,000 or more for services in 2026 ($600 for 2025). The deadline is January 31.
Small Business & BookkeepingSmall businesses that owe $25,000 or less can get a streamlined installment agreement without financial disclosure. Larger balances require Form 433-B.
Small Business & BookkeepingWhen a taxpayer owes federal taxes they cannot pay in full, the IRS offers several payment options under IRC 6159. Covers key rules, filing requirements,.
Small Business & BookkeepingAn offer in compromise (OIC) is an agreement between a taxpayer and the IRS to settle a tax debt for less than the full amount owed.
Small Business & BookkeepingAn Offer in Compromise (OIC) under IRC 7122 allows taxpayers to settle their IRS tax debt for less than the full amount owed when they can demonstrate.