How to Hide From the IRS by lhh12385

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									How to Hide From the IRS
Friday, 23 January 2009 10:12




 

How to Hide From the IRS




 




Now, I do not mean that literally - but it is wise to avoid creating
any red flags which will catch the eye of the IRS agent and
trigger an audit.




The IRS rulings are gray in many areas related to the operation
of a home daycare business; therefore, it is easy to interpret
their rules in a variety of ways. Rules pertaining to business use
of home expenses, claimed by home daycare providers, are
especially vague. Since no one wants to have a negative
encounter with the IRS,what can we do?




1.Be sure to file your taxes by the due date. If you forget or run
out of time and neglect to send anything to the IRS, there will
be expensive penalties involved.




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How to Hide From the IRS
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If you foresee a delay, send in Form 4868 which is a request for
a four month extension on filing your taxes. Be sure to include a
check with this form to cover the taxes you think you will owe.




If you have your taxes completed on time, but just do not have
enough money to pay your liability, you do need to send in all
that you can with your tax return by the due date. The IRS will
send you a bill for the balance due and impose a penalty, but
the penalty will be lower than if you just decided not to mail in
the tax forms at all.




2.Report all wages and interest received during the year. Be
sure that you supply the parents of children in your care with a
Form W-10 listing your name, social security number (or tax
identification number) as well as the total amount you have
received from them for child care during the year of 1998. It is
important that you have them sign this form agreeing to your
figures and make copies of the form for your records as well as
the parents. You need to be sure that the amount of income you
claim matches the amount of the child care tax deduction the
parent claims.



If you or your spouse receive Form W-2s or Form 1099s, rest
assured that the IRS received one too. If you do not claim the


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Friday, 23 January 2009 10:12




income, their "extra" copy could trigger an audit.




3.Remember to list correct social security numbers for all
taxpayers and dependents. Incorrect or missing numbers
usually stop the processing of your tax return and require
human intervention. Big red flag!




4.On a final note, please keep in mind that no matter who
prepares your tax return, you are ultimately responsible for the
information your forms contain. Tax preparers process
hundreds of tax returns each year. They are human and
mistakes or omissions can occur. Be sure to take the time to
verify all of the information on your return and ask for an
explanation if certain parts are not clear to you.

    It is your right to know exactly what you are signing!

 




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