Issue link: https://read.dmtmag.com/i/123324
Owner Operator Solutions Other Documents Keep any documents relating to deductions you claim. These include receipts for business-related purchases, mortgage statements, truck maintenance records and so on. Speak with a financial professional for a full list of items you should keep track of. Dealing With an Audit If you are selected as an unlucky winner of an IRS audit, prepare for your meeting with an auditor in the following manner. Gather all Records Any records used to prepare your tax return should be available for an auditor to examine, this includes receipts, bank statements, bills, invoices and transaction statements. Organize Your Records According to Scott Christensen, VP of Tax Services for EQUINOX Business Solutions, "Be sure you can easily access all tax documents. Doing so will make the process go smoother and reduce your risk of being unable to back up a claim." To illustrate, imagine an IRS auditor asking for proof you spent $3,000 at motels last year. You say, "Uh, I can't find my receipts, but I promise I'm telling the truth." You'd be rolling the dice, to say the least. Getting a system in place now that helps you stay organized will pay dividends in the future. Even if you never get audited, being able to quickly find and access all the financial documents related to your business will give you peace of mind when you sit down to prepare your taxes year to year. Hire a Professional Taxation may be the most boring, burdensome, complicated, expensive, time-wasting issue known to man. Therefore, if the situation starts to get messy, consider hiring a company like EQUINOX Business Solutions to help navigate an audit. The last thing you need is a drawn-out audit or an IRS penalty because you weren't properly prepared. In addition to the time and money a professional tax service can save you, you'll also have someone in your corner to help you through the audit process if you are ever audited. In addition to the peace of mind that comes from having a tax professional prepare your taxes, most professional tax services will review your previous year's tax filing to ensure that they were filed correctly. This review service is helpful is two ways: First, it will allow you to rest easy knowing that nothing was missed or overlooked that might cause a red flag with the IRS and second, if there were any mistakes or potential problems with your previous year's tax filing you will be able to fix them before the IRS comes knocking on your door. That includes finding any deductions that were missed or overlooked that may result in money that is owed to you. In many cases hiring a tax professional to file your taxes and review your prior filings will result in a larger tax return due to their thorough understanding of the tax law. Conclusion As tax season swings into full force, the potential for an IRS audit resurfaces. Consider the mentioned tips in preparation for this possibility. If an audit actually occurs, be sure to have all records available and organized. Hire a professional if you need help getting through the process. Then, think twice about how you file next time around! OO EQUINOX Business Solutions is a privately held technology and business services company headquartered in Salt Lake City, UT. EQUINOX offers technology-driven business services designed to lower the cost and increase the profitability of contractors in the transportation industry. To learn how EQUINOX can help, go to http://www.equinoxbusiness.com / Owner operator/ May 2013 / / 32 OO 0513 edit.indd 32 4/5/13 2:12 PM