…..I have a new client from Western Texas who recently was audited.
…..If you own your own business, please listen to the advice I give my clients. DO NOT have many bank accounts to run your company. This taxpayer had over 7 bank accounts. When the IRS audited this person, they added all the deposits from each bank account and made that the clients taxable sales. If you transfer funds, you have to PROVE all the transfers otherwise it automatically becomes additional income.
…..When the audit was finished, the government taxed her over $77,000.00 BALANCE DUE even though the taxpayer said that she had very little profit. Had she only had ONE checking account, it is possible she would have owed very little or NO MONEY.
…..Please try to work with ONE account or two if you must. And DO NOT transfer any funds back and forth because if you can’t prove what you did, the Internal Revenue Service will tax you as having UNDERREPORTED INCOME. GUARANTEED. Henry – Founder