As a self-employed individual, it’s especially important to file your taxes with care. When you’re self-employed, the responsibility falls solely on you to keep proper books and records. No matter what industry you work in, you should be proactive about accurate record keeping and documentation to avoid tax troubles.
When it comes to individual tax returns, the most common type of auditis an examination of the Schedule C because this is the schedule that reports the income and business expenses of freelancers and most single member LLCs.
Eduardo, a 212 Tax client, worked in the entertainment industry, which usually involves higher than average business expenses. He had travel and hotel expenses in costly cities and many high-end business meals in addition to that. His receipts and records reflected a chaotic lifestyle. Eduardo’s lack of organization led to errors when filing his tax documents, and he ultimately received an I.R.S notice requesting an in-person audit of his Schedule C.
With help from the team at 212 Tax & Accounting Services, Eduardo’s books and records were organized for the two tax years that were under examination. By presenting him in an organized, professional way, we were able to lower his tax assessment and also convince the I.R.S auditor not to examine prior years’ returns.
By working with a C.P.A. at 212 Tax, you can effectively lower your tax assessment after an audit. We can work with you to put your financial records in order and implement a system to make filing easier in the future. We’ve helped lower audit tax bills and abate penalties for countless individuals, and some even end up owing no taxes at all with our assistance!
Don’t delay when it comes to your taxes! Contact 212 Tax today to take control of your finances once and for all.
