Are Form 1120 C Audit 2023-2024

Hello, this is Dave Horwedel with Stack Solutions. My clients frankly tell me they do not want to raise any red flags to the IRS. The biggest red flag is an overdue unfiled tax return. There is nothing more likely to bring unwanted tax scrutiny upon you. Okay, what other red flags to lower? Make sure your reported income matches IRS records. The IRS receives W-2s and 1099s that show your income. Submitting a return without this income included immediately shows up on the IRS computer as unreported income. Do not file your return with income that is missing 1099s or W-2s. Get these records. Another red flag is being self-employed and running a small business and filing a Schedule C. This may be unfair, but the Schedule C is much more frequently audited by the IRS and others. Another possible handling is to incorporate your business. Then, you are a W-2 employee of the corporation you own and as an owner, you get dividends as well. There are a number of red flags that are unavoidable. Among them are alimony, unusually large deductions, expenses above the industry standard, and high travel and entertainment deductions. These are all red flags and increase the risk, but they also reduce taxes. So if you can substantiate these, take them. Have your returns filed by a top licensed professional. Self-employed returns are much more likely to be audited, so have your returns done by untrained, unlicensed tax preparers. The next question is, how do you not raise red flags to the IRS? The first answer is file your taxes. Filing your taxes is the first red flag to handle. Of course, you do not want to take a big hit. Filing your taxes without a CPA or EA licenses on his wall or having after his name stationery. He is...