Issue link: https://read.dmtmag.com/i/132118
EQUINOX BUSINESS SOLUTIONS By: Scott Christensen, Vice President of Tax Services at EQUINOX Owner-Operator Solutions The Leader in Business Services for Transportation How to Survive A An IRS Audit Of Your Trucking Business ll truckers pay income taxes, or at least all truckers who don't like the idea of becoming a punching bag for the IRS. Yet, after tax day, there's a small, but significant, chance a few guys in suits and black sunglasses will show up and become a major pain in your life. One in 25 sole proprietors, which many truckers operate as, is audited by the IRS each year. And, while the risk is relatively low, you'll want to cover your assets in case they take a second look at your taxes. How can you survive an IRS audit of your trucking business? Keep Detailed Files That seemingly robotic IRS agent will want to see proof you spent $5,000 on repairs last year. And, he'll want to see a bunch of other documents. Below are some items you should keep in case you get audited: • 1099's • Cancelled checks • Invoices • Receipts • Statements Basically, any financial documentation should be kept, including those for income, expenses and purchases. Retain such documents for at least three years. Dealing With an Audit If Uncle Sam wants a second look at your taxes, here's what to do. Don't Volunteer Unnecessary Information In an audit situation, you'll receive a letter specifying what the IRS wants from you. In some cases, it will want you to mail specific documents. Other times, it will require you to appear at one of its offices. Either way, Scott Christensen VP of Tax Services for EQUINOX Business Solutions suggests, "Only offer items the IRS specifically requests. By doing so, you'll avoid disclosing too much information which, if something doesn't add up, could trigger a separate problem." Don't Lie Don't lie or fabricate evidence to support your tax return. After all, chances are any mistakes you may have made were honest. Why / OWNER OPERATOR/ JUNE 2013 / / 52 OO 0613 edit.indd 52 5/9/13 4:54 PM