Keeping the IRS off your back
Each of us, individuals and business owners, want to limit our involvement with the IRS as much as possible. Often, we can get away with filing our IRS taxes and not have to worry about them for the rest of the year. However, when mistakes are made in this process, things can get very complicated very fast.
Businesses must always be sure that they are filing as the correct type of corporation, whether it is an S-class, C-class, or multi-member LLC. The forms and the requirements are different in each case, and it is easy to mix them up. Additionally, it is also in your best interest to make sure you are hiring a certified accountant to file your IRS tax, as avoiding filing mistakes will end up saving you resources in the long run.
As an individual, the challenges can feel just as insurmountable. While your forms will be much less complicated than those of your corporate counterparts, you face the disadvantage of not having a team of business professionals at your disposal. Misreporting your taxes by failing to collect the right paperwork on time, or by saving your IRS taxes until the last minute, can lead to major headaches. If you are self-employed, you will be looking at the challenges of the corporate and individual worlds, needing to complete stacks of IRS tax paperwork all on your own.
An IRS audit is definitely a worst-case scenario, and all of these options have their own specific pitfalls that you must watch out for. Luckily, there are certified professionals that can be hired to help you with any of these challenges. If you are having doubts, do not hesitate to hire a Certified Public Accountant to assist you with any and all of your tax troubles. Avoiding an IRS audit should be your highest priority, and you know there is only one way to be sure.