The IRS is NOT the Mafia...Take your deductions!

How many times have I had the conversation with someone about taking deductions for all their small business expenses, and then heard...but...I don't want to mess it up or but...I don't want to get audited.  

The amount of money that people are paying the IRS because they are intimidated is obnoxious. It's like the IRS is the Mafia or something.  Or a gang.  Pay us money and we'll leave you alone. We'll let your children live.

OK people, time for a real live
IRS audit story to alleviate your fear.

I have taken many many many small business write-offs for over 20 years, and enjoyed having anywhere from an 11 - 16 % tax rate because of it.  The IRS wrote them in for us to enjoy, and you're skipping them because you think they were joking?

So my husband and I were audited last February '15 for the years 2013 & 2014.  When I first got the notice I panicked.  Then I settled down knowing that I was doing everything according to the law. Then when it was 2 weeks prior to the scheduled date, I started panicking again.

So I spent 2 full weeks around the clock checking everything, cross referencing, organizing, yelling at my husband to do the same, sending everything (piles) over to our CPA...who was actually new to us. You're thinking I shouldn't have taken all those write-offs aren't you?

I am sooooo glad I took all those write-offs.

Our CPA said we were the lowest recorded amount owed (less than $500.00 ) on their books.  Ha! And to be honest, most of what we owed was something that I found wrong and pointed out to them!
I would do it all over again, and in fact, I am!  Are you kidding me?  2-3 weeks of some serious time and worry for 20 years of that kind of tax rate!??  You can make up your own mind, but Im gonna keep on deducting...


Here's my Business Write Off Tax Tips:

1. Be honest.

2. Be proactive.

    Dig and write off everything you are due.  Do not be on the defensive.

3.  Hire a great CPA. 

We had a tax preparer early on that was inexpensive (like 150-200) and did the trick, but I started reading and educating myself, which led to my discovery that this person was not sufficient.  She wasn't going to get us in trouble, but she was not proactive at all.  There were many things that she never suggested that seemed to be standard write offs.  I believe that she was simply more accustomed to serving families with strictly employment income, and not self employed or business owners.  Experience is key.

Thank goodness we switched, and in fact, switched again.  Our newest and best CPA went to bat for us, handled the audit for both years when he didn't even file '13 for us, went to the actual audit meeting for us (we were not present), did all the follow-up, holy cow. He was awesome.

Please do not go directly to the I can't afford that. You cannot afford NOT to do that!

We work hard for our money, and we need to take advantage of everything available to help along the way.  This is a big deal, I'm not talking a few dollars saved.  This is not in the category of coupon clipping.  A 10% tax reduction is actually about a 30-50% actual savings on your tax bill possibly. (Talking generalities here. I'm not the accountant).

So we pay our new amazing CPA $500.00/year.  Because of our write offs, we save on average between $3000-6000/yr on our tax bill. That looks like simple math to me.

Take your deductions! Get a great CPA!