Beware The Tax Man Cometh

January 7, 2010 No comments »

In the next year, the IRS plans to look closely as small business owners, the self employed Schedule C filers and individuals who receive 1099 income.

If you own a samll business or earn 1099 income, the folks at the Internal Revenue Service want to get to know you much better. Not just because they are mean (well, maybe some of them are) but the larger reason is that some of you under report your income and according to the agency’s just released 2010 game plan, they are coming to get ya.

There is a gap between what taxpayers should pay every April 15th and what they actually pay. It comes to about $345 billion a year, Chris Wagner, the commissioner of the IRS Small Business and Self-Employed Operating Division, told a recent conference and about 44% of that comes from small-business under reporting.

His division, which is responsible for 41 million self-employed workers and 9 million small businesses with assets less than $10 million, is investing heavily in personnel. By the end of 2009, the division hired over 4,000 more people, including 1,100 revenue agents and 1,100 revenue officers. Revenue agents investigate possible criminal violations; revenue officers conduct noncriminal investigations and collections. The agency also expects to hire the same amount of personnel in 2010. These folks are after your money.

Wagner states that IRS auditors will zero in on filers of Sechedule C, the prime form used by self-employed people.

What can you do to protect yourself. HR Alliance has a solution that has provided 100’s of small business owners with not only audit protection but substantial tax savings as well. If you want to get rid of that IRS bulls-eye on your chest, call 360-567-2092 and we will show you how it can be done.