The IRS is gearing up for the next onslaught of audit attacks.  This time they’re after Sole Proprietorships aka Schedule C filers.  Remember if you have a Single Member LLC and have NOT elected how to be taxed for your business, you’re going to default right into the Sole Proprietorship category.

Based on the number of auditors moved over to this task force, you can figure that about 1 in 3 Sole Proprietorships is going to get tagged for audit.  If you have a Sole Proprietorship now or an LLC that is taxed as one, change it!

In the past few weeks, my husband Richard has had a few people inquire if we can guarantee that tax savings.  I understand the question.  Let’s say you are currently pretty satisfied that you have a good CPA.  There might be times when you feel like you have to remind him of things and maybe even educate him based on things you learn at TaxLoopholes website, but generally he’s good.  Then you hear that I did a FREE! CPA Tax Review and found that you’d been overpaying your taxes for about $15,000 per year.

You’ve been in business making about the same amount of money for about 4 years and so that means you’ve LOST OUT on $60,000!  How can that be?  You asked your CPA again and again, “Are you sure there isn’t something we can do?”

So, before you commit to hiring me and my firm, you want a guarantee that I can really save you that kind of money.

And, I can’t give you one. 

I wish I could.  But the AICPA (American Institute of CPAs) says I can’t.  In fact, that’s why I started doing FREE! CPA tax reviews.  I wanted you to know how much money we could save you up front.  And I always underestimate.  Chances are if I told you that you’d save $15,000, you’ll find that I can save you about $18,000 the first year and even more in subsequent years.  That’s because if we have enough time to prepare we can legally get you to a 10 or 15% tax bracket  

You may find a few people out there who call themselves “tax strategist” who will guarantee tax savings.  There are two things wrong with that:  (1)  It’s illegal to do so.  (2) I can guarantee one thing - they’re not preparing your tax returns.  That’s because if they did with a tax guarantee, they’d be shut down in a heartbeat.  You simply can’t do that.

So, I’m sorry that I can’t guarantee the savings.  I can tell you that I’ve been in business more years than I want to remember (put it this way - I was in college in the 70’s…)  and you can research my license with Nevada and Arizona State Boards of Accountancy and see that I’ve never had a complaint.  

But I can’t give you a guarantee.

The IRS is cracking down on tax preparers that commit fraud.  And if you’re one of the people unlucky enough to get pulled into the claims that seem to be “too good to be true”, you’re asking for an audit.

In the past few months, the IRS has seized client lists for tax preparers who:  created fraudulent Schedule C businesses (Sole Proprietorships), reported real estate investments on Schedule E that didn’t exist, used C Corporations to pay 100% of living expenses and tried to write off all expenses through trusts. 

If your name is on the list because you requested information, they prepared a return for you or you innocently attended a workshop, you might get pulled in the net too.

If you get contacted for an office, contact our office.  We can help!  You can reach us through Richard@DKTaxServices.com or via phone at 888.592.4769.

The IRS has created a handful of new audit guides creating unbelievably difficult audits for taxpayers. One of our TaxLoopholes Community members wrote in to say that the IRS audit team checked every single receipt for the entire year.

The new IRS Survival Guide for Real Estate Professionals with Real Estate Investors, offered for sale by TaxLoopholes, has helped hundreds of taxpayers prepare for an IRS audit. At the [October Tax Strategy Camp](http://www.taxloopholes.com/index.php?s=stldetail&id=305), we’ll provide Survival Guide information for the next round of audits: small business owners, anyone reporting capital gains, Sole Proprietorships and anyone selling with PayPal.

Join us at the October Tax Strategy camp to learn the latest in Tax Strategies. It’s your money, keep more of it.

When I go back and look at the business structures I was recommending 5+ years ago, I shudder. The rules have changed and people are more litigious then ever before. That means the type of structure you need to use has changed as well. I remember it used to be that the biggest risk to a partnership was the outside world, but in the last year, I’ve seen time and time again how partnership agreements have been used by unscrupulous partners to go after personal assets of the other party. I’m not talking about the business! I’m talking about partnerships that appear to be formed for the sole purpose of stealing from the other person. That’s why I’m going to have a special section at my October Tax Strategy Camp on the best business structures for today and the future.

When I go back and look at the business structures I was recommending 5+ years ago, I shudder.  The rules have changed and people are more litigious then ever before.  That means the type of structure you need to use has changed as well.  I remember it used to be that the biggest risk to a partnership was the outside world, but in the last year, I’ve seen time and time again how partnership agreements have been used by unscrupulous partners to go after personal assets of the other party.  I’m not talking about the business!  I’m talking about partnerships that appear to be formed for the sole purpose of stealing from the other person.  That’s why I’m going to have a special section at my October Tax Strategy Camp on the best business structures for today and the future.

The IRS has a new report due out December 2008 that announces their new audit targets: Sole Proprietorships and capital gains calculations. Sign up for our free enewsletter to make sure you’re prepared for an IRS audit. Order the three free special reports above and you’ll be automatically registered to get the latest in Tax Strategies and audit defense techniques.

We are in one of the most volatile tax times ever. More tax provisions are expiring than ever before in the history of the US. States are broke and are finding new, aggressive ways to tax anyone who buys there, sells there, travels there or even looks sideways at them. The IRS is on the attack, charged by the administration to go find money.

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