2,121 plain-English guides on cross-border moves, US and Canadian returns, and small-business money. Each one ends in what to do next, and says when a written Diagnostic is the smarter first step.
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IRS 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.
Small Business & BookkeepingBusiness owners who owe taxes they cannot pay in full have options: short-term payment plans, long-term installment agreements, Offer in Compromise.
Small Business & BookkeepingThe IRS imposes penalties on late filing (IRC 6651(a)(1), 5% per month up to 25%), late payment (IRC 6651(a)(2), 0.5% per month up to 25%).
Small Business & BookkeepingIRS penalties can be abated through first-time abatement (administrative waiver) or reasonable cause. FTA is the easier path and requires no documentation.
Small Business & BookkeepingForm 2848 (Power of Attorney and Declaration of Representative) authorizes a CPA, enrolled agent, or attorney to represent you before the IRS.
Small Business & BookkeepingThe IRS does not have unlimited time to audit your return, assess additional taxes, or collect on a tax debt. Statute of limitations overview.
Small Business & BookkeepingIf you owe taxes and can't pay in full, the IRS offers several payment options. A short-term payment plan (180 days) has no setup fee.
Small Business & BookkeepingThe IRS requires business records for 3-7 years depending on the type. Retention periods by record type: Keep for 3 years (standard audit statute): -.
Small Business & BookkeepingThe decision to lease or buy business equipment involves trade-offs between immediate tax deductions, cash flow preservation, and total cost of ownership.
Small Business & BookkeepingBuying equipment offers Section 179 immediate expensing and bonus depreciation. Leasing preserves cash and provides ongoing deductions.
Small Business & BookkeepingLeasehold improvements (also called tenant improvements or build-outs) are permanent improvements made to leased commercial space by either the tenant.