What If You Owed $60,000 MORE in Income Tax from an Audit? True Story!Jul 09, 2022
What would you do? You discovered you now owed $60,000 in taxes and it was all because of an accountant's error in filing your home business taxes. They did not record your income correctly! This is a true story!
Last year I had someone share with me their tax situation. They are a six-figure earner in their direct sales business. They had relied on their accountant to do the bookkeeping and file their income tax returns.
Turns out this was a BAD move!
The accountant did not record the income correctly on the tax return because they did not understand the business of direct sales. This resulted in the government coming back with a $60,000 tax bill for the previous few years. To further compound the issue, the tax auditor was not open to understand their business model AND the accountant had washed their hands from the situation …. Sorry NOT MY PROBLEM!
In the end, this individual paid $60,000 in additional taxes!
So what is the lesson of this story for you?
I believe that we all need to take an active role in our record keeping and be empowered knowing what we can and cannot write-off on our taxes. It's our responsibility as a businessperson. We do not have to feel stress, confused, and overwhelmed!
At the end of the day… if we do still decide to pass off that stack of files to someone else at tax season, we must know that they do not know our business like we do and if (when) they make a mistake in our tax filings we are still on the hook for the fight (and the tax bill).
My recommendation is to not just leave this in the hands of someone else... If you are struggling… and feeling like you have a mountain of work ahead of you it’s now time to change your tax paying future!
As I frequently share with people there’s two factors we need to consider right now:
ROE is return on effort! Yes, it might be a little work right now to clean up, get organized and know what you are doing... but it will pay massive dividends this tax season, next year and every year after!
ROI is the return in invest! If you invest in yourself right now, do the work it might just be the best investment you make in yourself this tax season! Don’t stress! It’s really not that complicated! Help is not far away if you really want it!
This is why I am so passionate to help those in the home business community!
I educate, encourage and clear the confusion out there around home business taxes. I wrote THE HOME-BASED BUSINESS GUIDE TO WRITE-OFF ALMOST ANYTHING! book for the purpose. For those who want to really take advantage and shorten their learning curve, they can embrace my online course, that proven record keeping system and my personalized one-on-one coaching. I’m here for those who really want to shorten their learning curve to have that coach and tax mentor I never had.
Take the Mystery Out of Home-Based Business Tax Write-Offs!