Reducing Tax Burdens And Your Chance Of An Audit!

We are upgrading our tax graphs/charts for all clients!


Please click on the line below to see a sample income tax graph taken from IRS data:

 

henry

 

Click here for the General And Administrative Expenses Spreadsheet

…..The graph/chart above is a sample from the IRS data taken from the latest Form 1040 tax returns available. This particular one is for Real Estate Brokers.

…..We are in the process of redesigning all our graphs for the first time in over 15 years. We are very excited to see the latest changes in percentages of individual expenses.  Fortunately the changes are reasonable for the time period involved.  These graphs/charts will have more detail than the previous ones and they are in color!

….. All our current clients will be getting the new series of graphs/charts before the year is out.  And we will be explaining to you how to use them with your bookkeeping.  There is NO CHARGE for the new charts and I personally am looking forward to going over the charts with our clients.  Henry – Founder

 

A follow-up

henryOur last blog told you how the Internal Revenue Service does not trust clients who have too many bank accounts.  Well neither does a mortgage banker!  Banks and the IRS look at your income in opposite ways.  The IRS believes you are hiding income when you have too many bank accounts. You have to PROVE the transfers to avoid being taxed on additional sales.  Mortgage bankers also have a problem with you having too many bank accounts.  They believe that you are exaggerating your sales income. You have to PROVE the deposit trail to show where the original source of your income comes from.  I had one banker tell me that I could not pay my bills because they only used one bank account to pay my business bills. I was not able to convince them that I was able to pay all my bills by using ALL my bank accounts. So I was turned down for a loan and had to look for another bank who could understand my having so many bank accounts.

…..So in summary, neither the IRS or Banks want to see many bank accounts. They prefer one or two ONLY.  IRS thinks you underestimate your income and the BANKERS think you overestimate your income by using so many bank accounts. Keep really good records and I repeat, DO NOT TRANSFER money between accounts if you want to win your audit with both the INTERNAL REVENUE SERVICE and also your MORTGAGE BANKER!!!  Henry – Founder.

Gone viral originally on facebook. Reposted on blog for your info.

 

henry[This story, I posted on facebook recently. Since it went viral, I thought I should post it on my blog so as to keep it more permanent.]

…..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

Welcome To The New Home Of Professor Tax!

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