The best way to avoid IRS issues is to keep an accurate record of all revenue and expenses in your business. I’ve seen many business owners panic at the end of the year when it’s time to turn records over to their tax preparers because they have not documented anything. This becomes a nightmare for the tax preparer, can cause unnecessary additional tax liability and ultimately can trigger an IRS audit. Don’t get caught with your pants down, document, document, document. It will save you in the long run.
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